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HMRC issues update on State Pension tax error that affected 1.4 million pensioners
HMRC says it will fix records and refunds after a 2010 PAYE error may have left pensioners overpaying by only a few pounds a year.
- HMRC admitted a long-running State Pension tax error affected up to 1.4 million pensioners, according to a fresh update the department provided to MPs.
- The error originated from 2010 changes to the PAYE system, causing incorrect State Pension figures to be used in PAYE, Self Assessment, and Simple Assessment calculations.
- Permanent Secretary John-Paul Marks apologized to the Public Accounts Committee, saying, "I apologise for this error," while acknowledging the impact on those with fixed incomes.
- HMRC is correcting affected records for the 2025/26 tax year while still finalizing its approach to identifying impacted taxpayers and issuing refunds.
- While there is no simple way for pensioners to check personal status, concerned individuals can compare their latest tax calculation with actual State Pension income received.
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Total News Sources17
Leaning Left0Leaning Right1Center16Last UpdatedBias Distribution94% Center
Bias Distribution
- 94% of the sources are Center
94% Center
C 94%
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