Latest news with #statePension
The Sun
21 hours ago
- Business
- The Sun
Virgin Media threatened bailiffs on me after I tried to cancel my contract – I panic every time my doorbell rings
Q. MY 18 month Virgin Media contract was due to end in April. I called Virgin Media to set up a new contract in March, and was offered an 18 month deal. 1 I signed up and was told that my direct debit would increase from £21.21 to £52 a month. A few days later I had a change of heart and decided to cancel the contract. I live on my own and only have my state pension for income, so I'm trying to cut back on unnecessary costs. I knew I had a 14 day cooling off period so I called Virgin Media and was told I could go back to my original deal. I was promised a refund of £75, which would be paid within eight days. Ten days later I had still not received the money so I called Virgin Media again. I was told there was no evidence that I had cancelled my contract. This was a shock and I again cancelled the deal. I had to return all of my Virgin Media equipment and was told I will not be charged. But this month I have been sent three emails and a letter from Virgin Media to say that I had broken my contract and must pay a £39.39 fee. Virgin Media said this will affect my credit score and bailiffs may come to my door. I panic every time the doorbell rings in case it is the bailiffs. Please help. Irene McQuillan, Perivale. A. I was sorry to hear of the worry this situation has caused you. Anyone would feel anxious knowing that bailiffs could come to their door. You are right that when you buy a broadband package you get a 14 day cooling off period. This means that if you change your mind during that time, you can leave your contract without paying a fee. I was keen to reassure you, so I contacted Virgin Media immediately. Its team has reviewed your account and said there have been no billing errors. You switched to another provider on April 11 and your Virgin Media contract expired on May 1. You last made a payment in March so you owed £33.39 for April. Virgin Media said that it has not engaged any debt collection agencies and its letter was to ask for the money you owe. Due to the confusion and the small amount of money involved, Virgin Media has agreed to waive the payment as a gesture of goodwill. Any marks on your credit file have also been removed. I hope I've been able to put your mind at rest. .
The Independent
21-05-2025
- Business
- The Independent
Two reasons why millions of pensioners are paying higher income tax rates
Around one million pensioners in the UK are now paying income tax at the higher rate of 40 per cent or above, double the number from four years ago. The total number of pensioners paying any income tax has increased by roughly two million between 2021-22 and 2025-26. The freeze on income tax thresholds and increases in state and other inflation-linked pensions are cited as key factors. Becoming a higher-rate taxpayer can trigger a "triple whammy" effect: more tax on pensions and savings, a reduced personal savings allowance, and a higher capital gains tax rate. This trend is expected to continue due to frozen allowances, though the rate of increase may slow as the state pension age rises.
Daily Mail
20-05-2025
- Business
- Daily Mail
More than one million pensioners now pay higher rate income tax as frozen thresholds continue to bite
More than one million pensioners are now paying higher rate income tax as frozen thresholds continue to bite, new figures from HM Revenue & Customs reveal. Some 904,000 people of state pension age or older are now paying 40 per cent income tax while 124,000 are paying 45 per cent, according to a freedom of information request obtained by former pensions minister Sir Steve Webb. While tax thresholds remain frozen, modest earners have been dragged into higher tax bands in a process known as fiscal drag. This has caused the number of pensioners paying a higher rate of income tax to double in just four years, the data reveals. Basic rate taxpayers must pay 20 per cent in tax on earnings over the £12,570 tax-free personal allowance. While higher rate taxpayers lose 40 per cent of an income between £50,271 and £125,140. Additional rate taxpayers must pay 45 per cent on earnings more than £125,140. State pension payments increase by the highest of inflation, earnings growth or 2.5 per cent under the triple lock mechanism – and the full, new state pension was hiked to £11,973 this April. This means pensioners withdrawing just a small income from a personal pension on top of the full state pension are now paying basic rate income tax – leading to 8.8 million now paying income tax compared to 6.7million four years ago. Thresholds are due to move in line with inflation from 2028 but vulnerable retirees relying on the state pension alone could be dragged into paying income tax as soon as next year. Sir Steve, now a partner at consultancy LCP, says the effects of frozen thresholds are not just limited to income tax but are a 'triple whammy' for higher and additional rate taxpayers. He adds: 'Not only does this mean more tax on income from state and company pensions, it also means pensioners are paying more tax on their savings as their personal savings allowance is cut.' While basic rate taxpayers have a personal savings allowance of £1,000 – the amount of interest that can be earned on savings before paying tax – higher rate taxpayers get just £500. Those in the additional rate band have none at all. This means a pensioner with an income of £50,271 – just £1 over the basic rate thresholds – will have their tax-free savings allowance slashed in half. For example, on £1,000 savings interest they will now have to pay £200 to the taxman.
