Millions are calling for the elimination of a “stealth tax” on state pensions because it continues to disproportionately affect those with low incomes.
Many are calling for it to be scrapped. (Photo: Daily Express)
Due to the income tax, beneficiaries’ benefits are reduced by at least 20%. Even people with lower incomes must pay taxes. It occurs as a petition requesting the suspension of the tax changes is started, according to Birmingham Live.
Working people in Britain are paying £241 billion in stealth taxes, including 860,000 additional rate taxpayers, a 50% increase from the previous year.
It comes as a petition is started asking for the tax changes to be stopped. Over 20,000 people have signed Ray Crawford’s petition, which he started.
“Because we have either workplace pension plans or private pension schemes to support us in our later years, we are penalized by the Government and HMRC by paying income tax on our State Pension.”
I would request that the government eliminate the fee that we pay.
The “stealth tax” is subtracted from their other pensions rather than being taken out of their State Pension.
However, because it is now legal for all employers to offer a workplace pension plan, more Britons are likely to face higher taxes in the future.
However, when combined with their state pensions, this will raise the level of taxable income.
In response to a petition, the government stated that recipients of the new or basic State Pension do not have to pay income tax. The State Pension is tax deductible, and the government is committed to making sure that senior citizens are treated with respect and dignity.
The State Pension (basic State Pension, new State Pension, and Additional State Pension), other taxable benefits, a private pension (workplace or personal), and any other income, such as money from investments, property, or savings, are all considered to be included in an individual’s total income if it exceeds the personal allowance, which is currently £12,570.
The personal allowance is high enough to guarantee that no income tax will be due for 30% of pensioners whose only source of income is the basic State Pension or State Pension.
