HMRC contacting 3.2m state pensioners as major mistake discovered
HMRC is taking action to correct a tax calculation error that could have left around 3.2 million State Pension recipients paying more tax than they should have. The tax authority has acknowledged that incorrect State Pension figures were used in certain tax calculations, affecting people paying tax through Pay As You Earn (PAYE), Self Assessment and Simple Assessment.
TL;DR
- HMRC is correcting a tax calculation error impacting around 3.2 million State Pension recipients.
- The error involved using incorrect State Pension figures in tax calculations for PAYE, Self Assessment, and Simple Assessment.
- The issue has persisted for several years, with PAYE errors dating back to 2010/11.
- Affected individuals may have overpaid tax, with average annual losses estimated at £1.76 to £2.30 for basic-rate taxpayers.
- HMRC is identifying affected cases and will make adjustments through tax codes, account credits, or repayments.
- Taxpayers concerned about earlier years can ask HMRC for a review with supporting evidence.