Corporate Adviser
  • Content Hubs
  • Magazine
  • Alerts
  • Events
  • Video
    • Master Trust Conference 2024 videos
  • Research & Guides
  • About
  • Contact
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG
No Result
View All Result
Corporate Adviser
No Result
View All Result

Sharp increase in taxpaying pensioners and higher-rate taxpayers: HMRC

by Muna Abdi
June 29, 2023
Share on FacebookShare on TwitterShare on LinkedInShare on Pinterest

The number of people 65 and older who paid income tax in 2023–2024 reached 8.5 million, representing a significant 10 per cent increase over the 7.73 million people who did so in the prior year, according to HMRC data.

According to the data, the number of tax-paying retirees represented by this most recent statistic is now exactly double that of 2004–2005.

The total number of taxpayers, including all age categories, increased by 1.3 million to 35.9 million. This rise brought more women (0.7 million) than men (0.5 million) into the tax system.

Meanwhile, more people are currently subject to higher tax rates. The number of people paying the highest “additional” rate of 45 per cent increased significantly from 555,000 to 862,000. Similarly, from 5.28 million to 5.59 million people paid the higher rate of 40 per cent. 

The significant increase in taxpaying pensioners can be attributed to multiple factors, says LCP, including the relatively substantial increase in the state pension starting from April 2023 as well as inflation-linked adjustments to other pensions.

LCP partner Steve Webb says: “The surge in the number of pensioners paying income tax shows that the policy of freezing tax thresholds is really beginning to bite.  A combination of high inflation and frozen tax allowances means that well over 8 million people aged 65 or over are now paying tax, a doubling in the last two decades. 

“The number of pensioners paying tax will continue to increase rapidly in years to come, particularly if inflation remains relatively high and thresholds continue to be frozen.  The freezes also mean far more people now paying a top tax rate of 45 per cent which was previously intended only for the very richest”

VIDEO FROM ROYAL LONDON


Find out more about how to support the switching of a workplace pension

Corporate Adviser Special Report

REQUEST YOUR COPY

Most Popular

  • HMRC research raises spectre of Budget cuts to salary sacrifice

  • NatWest Cushon spells out path to £25bn

  • Isio appoints Secondsight MD as client experience director

  • Govt gives green light on bulk transfers to ‘mega funds’ as part of widespread pension reforms

  • Consultants escape regulation but providers face new disclosure hurdles: Pension Investment Review

  • Smart Pension to invest 15pc of default into private markets

Corporate Adviser

© 2017-2024 Definite Article Media Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Privacy policy
  • T&Cs
  • Contact

Follow Us

X
No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.