half a million

Half a million taxpayers to get HMRC ‘tax demand’ letter: What to do if you acquire one

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According to a renowned tax firm, ignoring a 'tax demand' notice from HMRC could result in significant penalties for over half a million taxpayers. According to HMRC's calculations, 560,000 people will receive straightforward tax assessments for the fiscal year 2023/24 in the coming weeks. Simple assessment letters will be sent to those who owe income tax that cannot be automatically deducted from their earnings, owe HMRC £3,000 or more, or must pay tax on their state pension.

Latest HMRC numbers indicate half a million more retirees paying income tax

Creative Media News

According to HMRC's most recent numbers, more retirees are paying income tax than ever. The number of people over the state pension age who pay income tax increased by 660,000, from 7.85 million in 2023/24 to 8.51 million in 2024/25. It implies that approximately 9 million people over 65 are now paying income tax, up from 4.9 million in 2010/11. The massive increase in retirees paying tax is partly due to a stagnant income tax, with the £12,570 personal allowance frozen since 2021.

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