economy
HMRC writing to one million Britons offering 'free money'
HMRC indicated that payments should begin flowing "in the next few months"
TL;DR
- HMRC is sending letters to about one million low earners in the UK regarding owed pension tax relief.
- Many recipients may not understand the letters and could discard them as scams, leading to low take-up.
- The issue primarily affects women, making up about three-quarters of those impacted.
- It stems from the 'Net Pay Arrangement' in some workplace pension schemes, which disadvantages those earning below the income tax threshold.
- The average amount owed was estimated at around £53 per person in a 2021 consultation.
- Letters are being sent out gradually starting this month, with payments expected in the coming months.
- Experts warn that effective communication is crucial to ensure people receive their entitled money.