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Written question asked by Neil Gray (Scottish National Party) on Friday, 8 January 2021, in the House of Commons. It was due for an answer on Tuesday, 12 January 2021. It was answered by John Glen (Conservative) on Thursday, 14 January 2021 on behalf of the Treasury.


Workplace Pensions: Tax Allowances

Question

To ask the Chancellor of the Exchequer, what recent estimate he has made of the number of low-income workers with reduced take-home pay following application of pensions tax relief by pension scheme operators.

Answer

HMRC has estimated the number of individuals earning below the personal allowance and making workplace pension contributions via Real Time Information (RTI) using net pay arrangements.

For 2017-18, when the personal allowance was £11,500, HMRC estimate the number of individuals to be 1.5 million.

HMRC’s Survey of Personal Income (SPI) and administrative data was used to produce the estimates. The 2017-18 SPI data (published in March 2020) is the latest year available.


Secondary information

Type
Written question
Reference
134454
Session
2019-21
Subjects
Low incomes Workplace pensions Tax allowances
Contains statistics
Yes
Link
View this Written question on www.parliament.uk