So many are struggling just to get by
Milions are asking for a "stealth tax" on State Pension to be scrapped, as it continues to hit those on low incomes hard. The income tax means claimants see a deduction of at least 20 percent off their benefit.
Many more are likely to fall victim to the tax in future because, since 2012, it has become law for all employers to provide a workplace pension scheme. When this is added to their State Pensions, it will push people above the taxable income levels. He explained that he only gets a State Pension of £176.08 a week, amounting to £9,156 a year, which is well below the current New State Pension of £203.85 a week , because, he later discovered, he was on a lower rate of National Insurance contributions. When the State Pension is added to his workplace pension, he is charged 20 percent tax on the total, plus a further 19 percent deducted by the Scottish Government on the first £2,162 above the tax threshold of £12,570.
Mr Sinclair added: "If I did not have my small additional workplace pension I may be forced to sell my home which I worked for very hard all of my life and paid into. The Government only ever wants to speak about the headline-grabbing info of their triple lock 10.1 percent pension increase this year to £203 a week and they never ever speak of the hundreds of thousands of elderly pensioners who are only in receipt of a miserly State Pension of £105 to £179 a week maximum.
"Income earned through employment is taxable. In general, benefits that are designed to replace income are taxable and the same applies to income from the State Pension. Income tax is due on an individual's total income above the personal allowance, currently £12,570. Total income could include: the State Pension ; other taxable benefits; a private pension ; any other income, such as money from investments, property, or savings.
Danmark Seneste Nyt, Danmark Overskrifter
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