Recently become aware of the Income limits that the 65 – 74 age bracket are faced with.

If your income (includes ALL income) is over the income limit (£21800), HM Revenue & Customs (HMRC) will reduce the age-related allowance (£9030) by half of the amount – £1 for every £2 – you have over that limit, until the basic rate allowance is reached. You’ll always get the basic allowance (£6035), whatever the level of your income.

So if, for example, you’re 66 and have an income of £22,300 – £500 over the limit – HMRC would reduce your age-related allowance by £250 to £8,780.

This amount to tax at 50%.

While some readers will no doubt wish they get, or will get, £21,800 in retirement, the question is why does the Government encourage the over 65s to work and then hammer them?
Stuart Wright

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