Latest news with #AlanDavidFrost
Daily Record
14-05-2025
- Business
- Daily Record
New UK Government update on calls to increase Personal Allowance to £20,000
More than 252,500 people signed an online petition calling for an increase to the £12,570 Personal Allowance. Income tax rises for Scots in April - how the changes affect you The UK Government has rejected proposals in an online petition to increase the Personal Allowance from £12,570 to £20,000. More than 252,500 people from across the UK signed the e-petition that was debated in Westminster Hall earlier this week. Only a handful of MPs took part in the debate which was observed by petition creator Alan David Frost, who sat in the public gallery. The bottom line from Exchequer Secretary to the Treasury, James Murray, is that it would cost £50 billion to increase the Personal Allowance to £20,000. He told MPs: 'I recognise the views of everyone who has put their name to the petition, and let me be clear that, as a Government, we want taxes on working people and on pensioners, who have worked hard all their lives, to be as low as possible.' Mr Murray continued: 'We were elected to put more money in people's pockets and, crucially, we were elected to do so in a fiscally responsible way. That is a critical point to understand. 'We want to keep taxes on working people and pensioners as low as possible, but if we were to follow the calls of some Opposition parties and abandon fiscal responsibility, it would lead to economic chaos and the collapse of public services, and that would harm working people and pensioners the most.' Mr Murray explained: 'Raising the Personal Allowance to £20,000 would cost more than £50 billion. That is more than the £45 billion of unfunded tax cuts announced by Liz Truss in her disastrous mini-Budget. Conservative and Reform MPs may have cheered Liz Truss on, but like the British people, we in the Labour party know the damage that that caused, and we will never let it happen again. 'To put it another way, if £50 billion was taken out of public services, that would be equal to wiping out almost the entire UK defence budget or slashing the NHS by a quarter. The British people will not be the winners if public services collapse or chaos returns to the economy.' He highlighted how the Labour Government is doing 'everything we can to support working people and pensioners'. Mr Murray said: 'In our first Budget, we decided not to extend the freeze on personal tax thresholds, meaning that people will be able to keep more of their income. We are supporting hard-working families and pensioners through the plan to make work pay and through our significant increases to the national living and minimum wages and the State Pension.' He also said that the UK Persona Allowance is 'one of the more generous personal tax allowances in the OECD, and the most generous in the G7'. The Personal Allowance will be frozen at £12,570 until the 2028/29 financial year. Online petition Petition creator Alan David Frost argues it is 'abhorrent to tax pensioners on their State Pension when it is over the personal allowance' threshold and says the increase would 'inject more cash into the economy'. The 'raise the income tax personal allowance from £12570 to £20000' petition states: 'We think this would help low earners to get off benefits and allow pensioners a decent income. 'We think it is abhorrent to tax pensioners on their State Pension when it is over the personal allowance. We also think raising the personal allowance would lift many low earners out of benefits and inject more cash into the economy creating growth.' Responding to the proposals in the petition on February 20, the Treasury gave a similar response to Mr Murray. The Department said: "The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds." It also went on to say that the UK Government has no plans to increase the Personal Allowance to £20,000. You can read the full response on the petitions-parliament website here. State Pension payments 2025/26 Weekly State Pension payments increased on April 7, however, people will not see an immediate increase as the contributory benefit is paid in arrears. Full New State Pension Weekly payment: £230.25 Four-weekly payment: £921 Annual amount: £11,973 Full Basic State Pension Weekly payment: £176.45 Four-weekly payment: £705.80 Annual amount: £9,175 To check your own future State Pension payments, use the online forecasting tool on here. State Pension and tax The most important thing to be aware of is that someone on the full New State Pension will not pay income tax, but older people with additional income through employment, private or workplace pensions, might need to pay tax. For most people, this would be paid automatically through PAYE on employment and tax on private pensions. Anyone who doesn't pay tax automatically pays tax through deductions, would receive a tax bill from HMRC the following summer to be paid by January in the next year. There has been a fair bit of speculation on the number of pensioners who will pay tax before the Personal Allowance freeze ends, but currently of the 13 million State Pensioners across the UK, some 8.51 (65%) already pay some tax in retirement, so this isn't something new. And with auto-enrolment in the workplace - now in its 13th year - more people will benefit from increased income in retirement and will probably pay tax - which will typically be deducted from their private pension. It's important to understand any tax to be paid in retirement is based on the amount of income earned above the threshold - not the total additional income. For example, if someone has a total annual income of £13,000, they will pay tax on £430 - which is the amount above the £12,570 threshold. Those affected would then have to pay HMRC 19 per cent of their income above the threshold, which is the starter rate of tax in Scotland (20% in England).
South Wales Guardian
14-05-2025
- Business
- South Wales Guardian
MPs debate HMRC petition to increase income tax to £20k
In a debate in Westminster Hall tonight, MPs put forward passionate debates for and against the proposal, which was started by pensioner Alan David Frost, saying: "Raise the income tax personal allowance from £12570 to £20000. We think this would help low earners to get off benefits and allow pensioners a decent income. "We think it is abhorrent to tax pensioners on their State Pension when it is over the personal allowance. We also think raising the personal allowance would lift many low earners out of benefits and inject more cash into the economy creating growth." Signatures can still be added here. Lewis Atkinson is the Labour MP for Sunderland Central, introduced the petition, saying: "The reality is that average disposable incomes after tax fell from 2019-20 to 2023-24 an unprecedented and shocking situation in which people were left poorer at the end of the last Parliament than they were at the start of it. "That, I believe, is key context for today's debate, which has been triggered as a result of more than 250,000 citizens signing this petition about income tax personal allowances, for which I think also speaks to the wider and entirely understandable public frustration about living standard." He added: "In preparation for today's debate, I had the pleasure to talk with Mr. Alan Frost, who is in the gallery with us today, the creator of this petition. "Mr. Frost explained to me that he's recently retired, having worked his whole life, and he feels a sense of injustice that his state pension is considered as income for tax purposes, and that the tax threshold he faces are not increasing." MPs then debated the issue for almost an hour, including Liberal Democrat MP Tom Morrison , who said "I believe that increasing the personal increase allowance could ease the burden that many are facing." Fellow Liberal Democrat MP Daisy Cooper MP added that the number of people who signed this petition as a "cry for help". Conservative MP James Wild gave a: "spoiler alert (as) I think they are going to be disappointed because we have all seen the government's response where it says there are no such plans." The debate was concluded by James Murray, Exchequer Secretary to the Treasury, who explained that due to fiscal responsibility, it is not possible to change the personal allowance in the current climate. He estimated it would cost £50bn to make the change, saying: "I recognize the substantial support for this petition, hard working people and pensioners who have worked hard all their lives want taxes to be as low as possible, and I understand that. "However, as we have set out today, we have inherited a mess from the previous government, and we have had to take tough choices to set us on a path to generating economic growth. "Raising the personal allowance to £20,000 would undermine the work the chancellor has done to restore fiscal responsibility and economic stability, and it would slash the funding available for vital public services. This government remains committed to keeping people's taxes as low as possible." The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on. It decreases if your income is over £100,000. For every £2 you earn over £100,000, you lose £1 of your tax-free Personal Allowance. This amount has been frozen since 2021. Recommended reading: The former Conservative Government froze the threshold until April 2028, rather than allowing it to rise with inflation and wage growth, meaning more people will go onto higher tax brackets. If you're married or in a civil partnership, you may be able to claim Marriage Allowance to reduce your partner's tax if your income is less than the standard Personal Allowance. If you do not claim Marriage Allowance and you or your partner were born before 6 April 1935, you may be able to claim Married Couple's Allowance.
South Wales Argus
12-05-2025
- Business
- South Wales Argus
MPs debate HMRC petition to increase income tax to £20k
In a debate in Westminster Hall tonight, MPs put forward passionate debates for and against the proposal, which was started by pensioner Alan David Frost, saying: "Raise the income tax personal allowance from £12570 to £20000. We think this would help low earners to get off benefits and allow pensioners a decent income. "We think it is abhorrent to tax pensioners on their State Pension when it is over the personal allowance. We also think raising the personal allowance would lift many low earners out of benefits and inject more cash into the economy creating growth." Signatures can still be added here. Lewis Atkinson is the Labour MP for Sunderland Central, introduced the petition, saying: "The reality is that average disposable incomes after tax fell from 2019-20 to 2023-24 an unprecedented and shocking situation in which people were left poorer at the end of the last Parliament than they were at the start of it. "That, I believe, is key context for today's debate, which has been triggered as a result of more than 250,000 citizens signing this petition about income tax personal allowances, for which I think also speaks to the wider and entirely understandable public frustration about living standard." He added: "In preparation for today's debate, I had the pleasure to talk with Mr. Alan Frost, who is in the gallery with us today, the creator of this petition. "Mr. Frost explained to me that he's recently retired, having worked his whole life, and he feels a sense of injustice that his state pension is considered as income for tax purposes, and that the tax threshold he faces are not increasing." MPs then debated the issue for almost an hour, including Liberal Democrat MP Tom Morrison , who said "I believe that increasing the personal increase allowance could ease the burden that many are facing." Fellow Liberal Democrat MP Daisy Cooper MP added that the number of people who signed this petition as a "cry for help". Conservative MP James Wild gave a: "spoiler alert (as) I think they are going to be disappointed because we have all seen the government's response where it says there are no such plans." The debate was concluded by James Murray, Exchequer Secretary to the Treasury, who explained that due to fiscal responsibility, it is not possible to change the personal allowance in the current climate. He estimated it would cost £50bn to make the change, saying: "I recognize the substantial support for this petition, hard working people and pensioners who have worked hard all their lives want taxes to be as low as possible, and I understand that. "However, as we have set out today, we have inherited a mess from the previous government, and we have had to take tough choices to set us on a path to generating economic growth. "Raising the personal allowance to £20,000 would undermine the work the chancellor has done to restore fiscal responsibility and economic stability, and it would slash the funding available for vital public services. This government remains committed to keeping people's taxes as low as possible." What is the Personal Tax Allowance? The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on. It decreases if your income is over £100,000. For every £2 you earn over £100,000, you lose £1 of your tax-free Personal Allowance. This amount has been frozen since 2021. Recommended reading: The former Conservative Government froze the threshold until April 2028, rather than allowing it to rise with inflation and wage growth, meaning more people will go onto higher tax brackets. If you're married or in a civil partnership, you may be able to claim Marriage Allowance to reduce your partner's tax if your income is less than the standard Personal Allowance. If you do not claim Marriage Allowance and you or your partner were born before 6 April 1935, you may be able to claim Married Couple's Allowance.
Rhyl Journal
12-05-2025
- Business
- Rhyl Journal
MPs debate HMRC petition to increase income tax to £20k
In a debate in Westminster Hall tonight, MPs put forward passionate debates for and against the proposal, which was started by pensioner Alan David Frost, saying: "Raise the income tax personal allowance from £12570 to £20000. We think this would help low earners to get off benefits and allow pensioners a decent income. "We think it is abhorrent to tax pensioners on their State Pension when it is over the personal allowance. We also think raising the personal allowance would lift many low earners out of benefits and inject more cash into the economy creating growth." Signatures can still be added here. Lewis Atkinson is the Labour MP for Sunderland Central, introduced the petition, saying: "The reality is that average disposable incomes after tax fell from 2019-20 to 2023-24 an unprecedented and shocking situation in which people were left poorer at the end of the last Parliament than they were at the start of it. "That, I believe, is key context for today's debate, which has been triggered as a result of more than 250,000 citizens signing this petition about income tax personal allowances, for which I think also speaks to the wider and entirely understandable public frustration about living standard." He added: "In preparation for today's debate, I had the pleasure to talk with Mr. Alan Frost, who is in the gallery with us today, the creator of this petition. "Mr. Frost explained to me that he's recently retired, having worked his whole life, and he feels a sense of injustice that his state pension is considered as income for tax purposes, and that the tax threshold he faces are not increasing." MPs then debated the issue for almost an hour, including Liberal Democrat MP Tom Morrison , who said "I believe that increasing the personal increase allowance could ease the burden that many are facing." Fellow Liberal Democrat MP Daisy Cooper MP added that the number of people who signed this petition as a "cry for help". Conservative MP James Wild gave a: "spoiler alert (as) I think they are going to be disappointed because we have all seen the government's response where it says there are no such plans." The debate was concluded by James Murray, Exchequer Secretary to the Treasury, who explained that due to fiscal responsibility, it is not possible to change the personal allowance in the current climate. He estimated it would cost £50bn to make the change, saying: "I recognize the substantial support for this petition, hard working people and pensioners who have worked hard all their lives want taxes to be as low as possible, and I understand that. "However, as we have set out today, we have inherited a mess from the previous government, and we have had to take tough choices to set us on a path to generating economic growth. "Raising the personal allowance to £20,000 would undermine the work the chancellor has done to restore fiscal responsibility and economic stability, and it would slash the funding available for vital public services. This government remains committed to keeping people's taxes as low as possible." The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on. It decreases if your income is over £100,000. For every £2 you earn over £100,000, you lose £1 of your tax-free Personal Allowance. This amount has been frozen since 2021. Recommended reading: The former Conservative Government froze the threshold until April 2028, rather than allowing it to rise with inflation and wage growth, meaning more people will go onto higher tax brackets. If you're married or in a civil partnership, you may be able to claim Marriage Allowance to reduce your partner's tax if your income is less than the standard Personal Allowance. If you do not claim Marriage Allowance and you or your partner were born before 6 April 1935, you may be able to claim Married Couple's Allowance.
Glasgow Times
30-04-2025
- Business
- Glasgow Times
HMRC Income tax personal allowance rise petition MP debate
The rise will now have to be considered by MPs after the petition, which was started by Alan David Frost, saying: "Raise the income tax personal allowance from £12570 to £20000. We think this would help low earners to get off benefits and allow pensioners a decent income. "We think it is abhorrent to tax pensioners on their State Pension when it is over the personal allowance. We also think raising the personal allowance would lift many low earners out of benefits and inject more cash into the economy creating growth." After receiving more than 200,000 signatures and a written response from the treasury, there were no changes in the Spring statement 2025, but MPs will now have to debate the issue. Members of the public will be able to watch online on the UK Parliament YouTube channel. Once a petition reaches 10,000 signatures, the Government responds, and if 100,000 people sign, a debate in Parliament is considered. This petition currently has 247,793 signatures, and an update on the Parliament petitions website says "The Government has no plans to increase the Personal Allowance to £20,000. Increasing the Personal Allowance to £20,000 would come at a significant fiscal cost of many billions of pounds per annum. "This would reduce tax receipts substantially, decreasing funds available for the UK's hospitals, schools, and other essential public services that we all rely on. It would also undermine the work the Chancellor has done to restore fiscal responsibility and economic stability, which are critical to getting our economy growing and keeping taxes, inflation, and mortgages as low as possible. "The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at fiscal events in the usual way." Signatures can still be added here. What is the Personal Tax Allowance? The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on. It decreases if your income is over £100,000. For every £2 you earn over £100,000, you lose £1 of your tax-free Personal Allowance. This amount has been frozen since 2021. Some people are eligible for an increased personal allowance - the full details of that are listed here. Recommended reading: The last government froze the threshold until April 2028, rather than allowing it to rise with inflation and wage growth, meaning more people will go onto higher tax brackets. If you're married or in a civil partnership, you may be able to claim Marriage Allowance to reduce your partner's tax if your income is less than the standard Personal Allowance. If you do not claim Marriage Allowance and you or your partner were born before 6 April 1935, you may be able to claim Married Couple's Allowance.
