Over 50s to be made exempt from income tax

[SerendipityJane]

for a year.

Admittedly, the Express, so no basis in reality, but an interesting "idea" to tempt older people back to work.

Given that these people didn't give up work because they are loaded, not sure how many would take up such a generous offer.

Also not sure how 16-49 year olds would feel about subbing up this generation.

www.express.co.uk/finance/personalfinance/1720385/Income-tax-over-50s-exemption-Rishi-Sunak-work

For me, the real news here is the complete lack of connection between government and the governed. Never ends well, even if you do eat cake.

This is a ridiculous idea. Most of the benefit would go to over 50s who would be working anyway. All at the expense of younger people. Again.

State pension is taxable.

Slightly off topic but when you say you can’t pay more into ISAs and pensions, does that mean that you max out your £20k contribution to ISAs annually already from unearned income - and on the pension side I was always vaguely under the impression you didn’t get the tax benefit from unearned income .

Educate me! I am worried there is some £200k limit on ISAs now!

No thanks. I will stay semi retired. No stress, and only working when it suits me!

The majority of over 50s are not the demographic which need help.

For a year? Bit weird

Over 50, under 66, retired 4 years ago. Wouldn't tempt me back into teaching, that's for sure!

@mast0650

clearly not, it's for those RETURNING to work haven been taken/taken themselves out of the workforce!! Not those already in work!!

on the radio this morning a politician whose name I didn't catch was proposing all kinds of different options.

we really do need competent, experience people back in the workforce & obviously more people working is better for the economy, but they (mostly) retired early for a reason that wasn't how much tax they pay! That's what needs addressing!!

What they seem to forget is that only the well-off are able to retire early. Everybody else has to slog on until they are 68.

If this batshit idea takes off, then I sincerely hope that it also applies to us poor bastards over 50 who have to work because we can't afford to retire.

Surely not

Although I wouldn’t say no, tax free sounds great

I’m one of the over 50’s who retired.

l don’t want tax cuts to tempt me back to work. Give those to people who need them.

The things that would tempt me back to work would be less stress, less ageism, less thinking that 50 year olds have the same enthusiasm and energy as 20
year olds and less stupid targets.

l was watching this on the BBC politics show this morning. One of the people on there said her friend was a psychologist. The friend left because conditions in the NHS were so shit. Exactly the same reason why l left teaching. Conditions are shit.

This is what needs addressing. Not tax cuts.

Deadweight cost would be eye watering so even a policy wonk idea would require some targetting.

What about over 50s who are still working? Do we get a tax free year or will we keep getting taxed to subsidise people who have more money than us so can afford not to work?

Well, I’m sure there will now be an absolute stampede of over-50s sprinting back into the job market whose aspirations and longing for work have been tragically held back so far by the existence of income tax. People in their fifties will definitely make such a lifechanging decision based on a tax break that onky lasts for a year.

Or, all current employees in their fifties - ie most very senior staff - are about to get a massive tax break for no reason.

DH is in his forties but his colleagues in their fifties pay around £300000 p/a in income tax. What a loss to the government budget. And for what? They’ll just buy a few more buy to lets and push up property prices.

The state pension is taxable. You may not pay tax on it, but only because your income would be too low to be taxed. Not because it isn't taxed.

I don't think this is a serious idea but it makes me giggle that they don't seem to realise - even now - that many who can afford to run from the rat race will do that. It's like they're in a panic about it.

@CaptainMyCaptain

The state pension is taxable...it eats up the majority of the £12,570 personal tax free allowance

ISAs, no, just the £20k annual limit & I have severance money / TFLS waiting to use future allowances.

Pension - the Lifetime Allowance (LTA). Which is frozen for the next few years so if you are there now, no more tax benefit to putting any more in.

we really do need competent, experience people back in the workforce

Judging by the asininity of this proposal, a fucking good place to start is politics.

clearly not, it's for those RETURNING to work haven been taken/taken themselves out of the workforce!! Not those already in work!!

Yes I know. But if the over 50s are not inclined to be tempted to return to work because of an increase in pay then it will still be the case that most of the benefit would go to those who would have started work again anyway. I know plenty of over 50s who take a pause between jobs while they search. Or (mostly) women who choose to return to work after a long break. They would benefit enormously without really changing their behaviour.

Nailed it!

There’s not really much substance to that article (not sure what I expected tbh!) but it would appear to be an increased personal allowance for one or maybe more years for people over 50 who had retired?

So not necessarily tax free and not for people who’ve stayed working?

Pity as DH is 50 and if he didn’t have to pay tax we’d have a bit more money.

Also surely the point of wanting to get people back into work is to make them pay into the system...?

the employers will probably still have to pay

do the gov think the workers will claim benefits instead?

But to be perfectly honest, I'd agree to pretty much any hair brained scheme that got people back to work that we need!!

however, I don't blame any of them for saying 'no' if financially they can cope without it.

The thing I don't understand is that they are trying to encourage some of oldest and sickest people back to work when a lot of the labour shortages are in areas unsuitable for them as they are highly physically demanding. Many at that age also have caring responsibilities for elderly parents or grandchildren. Them going back to work creates other problems elsewhere.

There is no easy solution, too bad we came out of Europe.