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HMRC admits it overtaxed 1.4 million pensioners: The Telegraph
HMRC said the mistake affected 1.4 million pensioners in PAYE and may have cost basic-rate taxpayers £1.76 a year on average.
- HMRC chief executive John-Paul Marks admitted to overtaxing 1.4 million pensioners in a letter to MPs, confirming a 15-year error originating from a 2010 system modification.
- The error originated from a system modification in 2010 that caused HMRC to use incorrect state pension figures in calculating tax for pensioners in the PAYE system.
- Beyond the 1.4 million PAYE pensioners, up to 955,000 in self-assessment and 760,000 in simple assessment may have also been overcharged due to the same pension calculation error.
- Marks apologized for the error, but HMRC has not committed to automatic repayments, requiring affected pensioners to contact the tax office directly to resolve the issue.
- Jon Greer of investment firm Quilter observed that while individual losses were small, the scale suggests the government may have "unfairly topped up" its coffers from the error.
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Chronicle Live+2 Reposted by 2 other sources
HMRC letters for 1.4 million in UK as pensioners left 'confused'
1.4 million pensioners were affected by a 2010 system change
·Newcastle upon Tyne, United Kingdom
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Coverage Details
Total News Sources7
Leaning Left1Leaning Right2Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
14%
C 57%
R 29%
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