US EditionHMRC mounts clampdown on pensions tax relief claims
HM Revenue and Customs will stop accepting phone claims and require evidence for pension relief, aiming to reduce errors seen in one-third of claims under £10,000, affecting 80,000 annual claims.
- On September 1, HM Revenue and Customs will stop accepting telephone pension tax relief claims and require higher earners to submit claims via online form or postal claims as part of intensified enforcement.
- Faced with a reported public finances gap of up to 50bn, officials view the measure as part of money-raising proposals ahead of the Autumn Budget while Chancellor Rachel Reeves considers pension options.
- HMRC data show the problem is concentrated among about 80,000 annual Personal Pension Relief claims, with nearly a third of claims up to £10,000 inaccurate due to common mistakes: non-higher-rate status, misreported contributions, and net pay duplicates.
- An HMRC spokesperson said lowering the threshold will ensure correct relief and `protect taxpayers' money`, but Helen Morrissey warned that removing phone claims could hinder taxpayers without online access due to slow postal applications.
- Officials note that income tax relief cost 30 billion in 2024-25, while Chancellor Rachel Reeves plans 500 more HMRC compliance staff and considers cutting the tax-free lump sum to 40,000 ahead of the Autumn Budget.
Insights by Ground AI
Does this summary seem wrong?
9 Articles
9 Articles
Coverage Details
Total News Sources9
Leaning Left0Leaning Right3Center3Last UpdatedBias Distribution50% Center, 50% Right
Bias Distribution
- 50% of the sources are Center, 50% of the sources lean Right
50% Right
C 50%
R 50%
Factuality
To view factuality data please Upgrade to Premium
