So the chancellor has just announced a freeze on tax allowances after this coming new tax year year 2021-22, coming in for 2022-23 till 2026.
Personally for me, my current pension is £11840 and my tax allowance is (in the coming year) £12570.
So unless my RMSPS and RMPP pensions increase by more than £730 through inflation rises till 2026, I should not have to pay any income tax.
If it does I may have to pay an little tax.
I estimate that if my pensions were to rise by 2% a year for those 4 years, my tax liability would be £202 in 2025-26, with £40 annual income tax at a 20% rate in the final year of freezing thresholds.
Personally I can't see our pensions increasing by 2% a year.
ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (Updated 2021)... HERE
ANNOUNCEMENT : PLEASE BE AWARE WE ARE NOT ON FACEBOOK AT ALL!
Freezing of tax allowances from 2022 to 2026
-
stephen500
- EX ROYAL MAIL
- Posts: 1458
- Joined: 02 Jun 2007, 04:04