In the coming weeks, 560,000 individuals will receive simple tax assessments for the 2023/24 tax year. These will be sent to those who owe income tax that cannot be automatically taken out of their own income, owe HMRC £3,000 or more, or have to pay tax on their state pension. An increase in interest rates means that more individuals with modest savings may now become liable to tax on their income. It will also be the first time many pensioners will receive a tax demand, because frozen personal allowance thresholds mean their state and private pension income have pulled them above the threshold. Of the half a million taxpayers expected to receive a tax demand letter, 140,000 of them will be pensioners.
