Published • loading... • Updated
Millions of pensioners could be owed money after HMRC mistake
HM Revenue & Customs will correct cases automatically, with repayments averaging about £6 each and covering tax years from 2020/21 onward.
- Around 3.2 million pensioners are set to receive tax refunds from HMRC totaling around £19.3 million, roughly £6 per person on average, following a calculation error in state pension assessments.
- When state pension rates increased mid-year, HMRC incorrectly applied the higher rate to all 52 weeks instead of one week at the previous rate and 51 weeks at the increased rate, overstating annual pension income.
- Pensioners do not need to apply for the correction, which covers tax years from 2020/21 onwards and will be processed automatically through PAYE adjustments, Self Assessment credits or other payment methods.
- Tax specialist Andy Wood from Tax Barrister UK cautioned that the error was difficult for pensioners to spot and stressed, "Pensioners should be able to trust that the income figure used to work out their tax is correct."
- The automatic correction does not cover tax years before 2020/21 because HMRC lacks sufficient data; Andy urged HMRC to clarify which years were addressed so pensioners understand what questions remain.
Insights by Ground AI
13 Articles
13 Articles
Wilts & Gloucestershire Standard+11 Reposted by 11 other sources
Millions of pensioners could be owed money after HMRC mistake
Around 3.2 million pensioners are due HMRC refunds after a state pension tax calculation error. Find out who is affected and what happens next.
·Stroud, United Kingdom
Read Full ArticleCoverage Details
Total News Sources13
Leaning Left0Leaning Right0Center13Last UpdatedBias Distribution100% Center
Bias Distribution
- 100% of the sources are Center
100% Center
C 100%
Factuality
To view factuality data please Upgrade to Premium
