Finance expert says State Pension tax should be paid by those with a higher income
manchestereveningnews.co.ukNew data from HM Revenue and Customs (HMRC) reveals that the number of people of State Pension age or over paying income tax has surged in recent years due to frozen tax thresholds and significant successive increases to the State Pension.
Statistics show that around 6.7 million people of State Pension age or over were paying income tax as of 2021/22. However this is expected to have risen to 7.1m in 2022/23, 7.9m in 2023/24 and 8.5m in 2024/25 as more pensioners fall into the income tax bracket.
The most recent figures from the Department for Work and Pensions (DWP) suggest there are nearly 12.7m people of State Pension age across the UK, which means 67 per cent of all retirees are predicted to pay tax for the current financial year.
However, financial expert David Brooks, says that it is "wholly appropriate that pensioners on higher incomes are subject to higher levels of tax".
Read more on manchestereveningnews.co.uk