To be annoyed at the new tax brackets?

[Justbrowsing2024]

Means myself and lots of people I know will need to pay 40% tax. The new thresholds being lowered means we will be worse off at a time when everything is going up. I know it's only on a proportion of salary but it's a proportion that was going towards the increase in mortgage (due to come off an amazing low rate), imminent increase in childcare fees, council tax and everything else.
I know it's affecting so many people but today I have felt really flat.

I'm not anywhere near the top of the threshold (£45500 salary) and unlikely to get a payrise.
I'm sure tomorrow will feel brighter but feel free to join my pity party

I really hope so. I imagine it is quote a worry for people that only have state pension but arent entitled to any other help.

No. There was no need for you to be rude. You could have just clarified.

@Xenia State pension goes over the personal allowance on 6th April
which combined with the reduced interest allowance will force huge numbers of pensioners into self assessment
because there is no mechanism to deduct tax from the state pension
and the one for bank interest was removed years ago

It's not "on the news". But even if what you have linked was a "news" site, it's still irrelevant speculation. And entirely different to where the govt has clearly said they are taking the money from. It's so clear that the minister who runs the department that is losing the money has resigned. The International Development dept, not Work and Pensions!

Yes. You copied and pasted scaremongering nonsense. It's nothing to be proud of!

It was a news report. Why does it matter to you if you think it fake news?

If you continue to be pedantic in your life you will not be happy. Not everyone would have this much patience with you.

State pension from April is £11,973. So still below the Personal Allowance. No change for starting rate for interest on savings fir 25/26 as far as I can see. If that is changing do you have a link, please?

It was a news report.

No it wasn't. It was an entertainment piece from an entertainment channel that is registered as such with OFCOM. When they change to register as a news channel, they can be described as such.

Why does it matter to you if you think it fake news?

We all share a duty to call out lies intended to weaken and corrode our country. Robust debate and disagreements and opinions are welcomed. But if you need to use lies to win your argument, then it's fuck all of an argument isn't it ?

If news is a reporting of events then "fake news" is lies. Calling it lies saves 5 keypresses. If we all did that the UKs productivity crisis would be solved overnight.

Simple Assessment is the method HMRC collect tax on state pension if necessary. No need for a tax return

I don't need your patience. "Pedantic" is another word for "correct", so thank you for agreeing I am right.

I didn't, by the way, say it was "fake news". It's not even pretending to be news. It is mere speculation. This is denoted by the word "could" in the headline. That shows you that it's just someone's guessing about something. Not that it makes any sense to do that when the source of the funding has been made clear by the government.

If I say "the world could end tomorrow" would you consider that "news"? Or just made up speculation? Because it has as much validity as the "editorial" piece you're referring to on GB News.

And I am very happy, but thank you for caring.

Yes, I was confused by that comment too.

The interest free changes were the ones done by Hunt but savers are now having the full impact of the lower allowance and higher interest rates on their savings.

Several friends have been caught by trivial amounts that tip them into taxpaying.

State pension - many older people get additional state pension which has never been taxed at source before, all of a sudden it has hit the limit.

All of the accountancy forums I am on are still trying to work out how HMRC will handle it as DWP have no tax deduction mechanism.

State pension is paid by DWP who have no capacity to collect tax

The starting rate for interest stays at the current £5000 but is reduced by any other income that exceeds the personal allowance

Fewer and fewer pensioners will be staying outside the scope of tax from April
https://www.gov.uk/apply-tax-free-interest-on-savings

But they can collect NI.

Where do DWP collect NI ?

NI is on PAYE and self assessment, it not on benefits and pensions.

https://www.gov.uk/carers-credit

You could get Carer’s Credit if you’re caring for someone for at least 20 hours a week.
Carer’s Credit is a National Insurance credit that helps with gaps in your National Insurance record. Your State Pension is based on your National Insurance record.

So they are allocating a deemed amount, not actually handling receipts or payments

In what way is "allocating a deemed amount" not "paying" ?

As far as someone in receipt of Carers Allowance is concerned, their NI is paid by the DWP.

If it emerges that through some weird systemic oversight the DWP are not able to credit HMRC for other payments (e.g. pensions) then we really need to ask who in the name of holy fuck signed off on a system that doesn't do basic accountancy. All of a sudden Birmingham Councils non-accounting accounting system starts to look positively overpowered.

But that is beyond the scope of this thread 😀I'd need a new "F" key for a start.

@SerendipityJane
No money moves from a bank account to another bank account.

The DWP pays out benefits. It does not receive money from pensioners.
HMRC pays out refunds and receives amounts due

So, DWP could reduce the pension payment by the tax required and pay that sum to HMRC.

Or, they buy in a payroll service to do it.

Or, people who now fall into tax payments do a simple assessment each year, though I'd imagine that will be tricky to monitor.

The payroll service seems the best option. Probably cost more than the tax take though!

No, you are totally wrong. Please stop spreading misinformation. You need to ADD your personal allowance for goodness sakes.

Anyone who can’t add up can always use a website like Listen to Taxman which has a calculator.

So I was right - even from April 2025 if your only income is state pension then it is below the personal tax allowance so not taxed?
"New State Pension
If you receive the new State Pension, the full amount you’ll receive for the 2025/26 tax year will be £230.25 a week (compared to £221.20 a week for the 2024/25 tax year)." That is £11,973. "The standard employee personal allowance for the 2025 to 2026 tax year is: £242 per week. £1,048 per month. £12,570 per year"

Pedantic means "like a pedant," someone who's too concerned with literal accuracy or formality. It's a negative term that implies someone is showing off book learning or trivia, especially in a tiresome way.