Government Sets Pensioner Tax Trap at £35,000 Winter Fuel Payment Cliff-Edge

Tory sources point out that government’s withdrawal of the Winter Fuel Allowance for pensioners on incomes of £35,000 and above actually creates an absurd marginal tax rate for any OAP whose income happens to be exactly £35,000. Presumably nobody in Whitehall has noticed this…

Since the payment isn’t tapered, the cliff-edge means creates a marginal rate of about 10,020% on the next £1 earned for those who hit the £35,000 bullseye.[…] Read the rest