Pensioners 'could be hit with £1,049 tax bills' in Autumn Budget

Pensioners 'could be hit with £1,049 tax bills' in Autumn Budget View 2 Images

Pensioners could face a substantial tax increase under proposals allegedly being weighed up by Chancellor Rachel Reeves. Fresh analysis reveals that older people may be among those worst affected by the rumoured Autumn Budget measures, which involve raising income tax rates while reducing National Insurance by two percentage points.

Since pensioners are exempt from National Insurance contributions, they would bear the complete burden of the income tax rise without gaining any advantage from the NI reduction. This means a pensioner earning a retirement income of £35,000 would fork out nearly £450 extra in tax annually, whilst someone on a higher income of £65,000 could be landed with a £1,049 bill, according