A new HMRC petition launched by Timothy Hugh Mason is pushing the government to raise the HMRC Personal Allowance for state pensioners to £25,140 — effectively doubling the current threshold.
The proposal calls for a special HMRC tax code for retirees that would provide a higher level of tax-free income, while still ensuring wealthier pensioners continue paying tax on excess earnings.
This campaign highlights how current HMRC tax rules unfairly burden pensioners with small private or workplace pensions.
As of now, the HMRC petition has gathered 2,478 signatures, with more needed to trigger an official government and HMRC response and potentially a parliamentary debate.
What Is the HMRC Personal Tax Allowance & Current Status
The HMRC Personal Allowance determines how much income an individual in the UK can earn tax-free before paying HMRC income tax. For the 2025/26 tax year, that figure remains £12,570 for most taxpayers.
However, the HMRC Personal Allowance has been frozen since 2021 and is expected to remain unchanged until April 2028. This freeze, combined with inflation, is forcing more pensioners into paying income tax each year.
If income exceeds £100,000, the allowance is reduced by £1 for every £2 earned over that threshold — meaning anyone earning £125,140 or more loses their entire HMRC tax-free allowance.
Why Pensioners Want a £25,140 HMRC Threshold
Campaigners argue that pensioners living on fixed and modest incomes are being unfairly taxed under the current HMRC system.
Key reasons for the HMRC reform:
- Many pensioners currently pay HMRC income tax on their modest private or occupational pensions.
- The HMRC allowance freeze reduces real-term value due to inflation.
- Raising the HMRC Personal Allowance to £25,140 would help retirees retain more of their pension income.
One petition statement reads:
“We want the government to introduce a new HMRC tax code for state pensioners, set at double the basic threshold … people with small private or workplace pensions are currently being taxed unfairly.”
HMRC Petition Status & Next Steps
| Milestone | Requirement | Purpose |
|---|---|---|
| 10,000 signatures | HMRC & Government respond officially | Formal acknowledgment of the issue |
| 100,000 signatures | Petition debated in Parliament | Elevates the proposal for legislative consideration |
| Current count | ~2,478 signatures | Ongoing campaign and growing support |
The HMRC petition remains open until 1 April 2026, giving UK citizens time to add signatures and support the tax-free allowance increase.
Challenges & Financial Implications for HMRC
Implementing a £25,140 HMRC Personal Allowance would be a significant fiscal move, with billions in potential lost revenue for HMRC.
- Doubling the allowance could cost over £60 billion if paired with changes to other tax bands.
- Without adjustments to HMRC’s higher rate thresholds, it could alter the structure of UK tax bands.
- The current HMRC allowance freeze is part of “fiscal drag,” where more people pay higher taxes as incomes rise without rate changes.
Even so, campaigners insist that the HMRC tax allowance reform is essential to protect pensioners from financial strain amid the rising cost of living.
The campaign to double the HMRC Personal Allowance to £25,140 reflects growing frustration among pensioners who feel the current HMRC tax system is outdated and unfair.
With inflation rising and fixed incomes shrinking, supporters believe the HMRC reform could bring much-needed relief to millions of retirees.
If the HMRC petition gains enough momentum, it could force Parliament to revisit how tax allowances are set — and finally deliver a fairer system for those who have worked a lifetime to earn their pension income.
FAQs
Who is eligible for the proposed £25,140 HMRC Personal Allowance?
The proposal targets state pensioners — those receiving the State Pension and small private or workplace pensions affected by HMRC’s current tax thresholds.
How many signatures are needed for HMRC to respond?
A2: Once the petition reaches 10,000 signatures, HMRC and the Government must respond officially. A total of 100,000 signatures could lead to a parliamentary debate.
Why has HMRC frozen the Personal Allowance until 2028?
The HMRC freeze helps generate additional tax revenue through fiscal drag, allowing more people to fall into tax brackets even without rate increases.