MSE News: Millions of pensioners overpaying tax

This is the discussion thread for the following MSE News Story:
"Millions of pensioners are paying too much tax because the system is so complex, the National Audit Office (NAO) said today ..."


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Millions of pensioners overpaying tax


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Comments

  • harz99
    harz99 Posts: 3,630 Forumite
    Name Dropper First Post First Anniversary Home Insurance Hacker!
    One of the most pernicious things for those that have retired, whether early or at state pension age, is that when their income is even only slightly above their tax free allowances, they have to pay immediate tax on all savings interest earnt (except ISAs) and reclaim it at a later date.

    The time the extra money taken in tax is needed by the individual is often at the time such interest is paid, not months later.

    If HMRC can cope with the self employed settling there tax in arrears, it should be able to do so for pensioners, or any early retiree over 60 years of age, via self assessment.
  • dunstonh
    dunstonh Posts: 116,232 Forumite
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    If HMRC can cope with the self employed settling there tax in arrears
    i would think that most self employed pay their tax in advance with two payments a year.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • pacemaker
    pacemaker Posts: 14 Forumite
    edited 29 October 2009 at 9:47PM
    Its all very well the tax office saying we pensioner don't claim what we are entitled to, but when you do they immediately loose your paperwork. I have now lived in France since Oct 1st 2007 I saught advice from the tax office about declaring in France to be told that I need to write to them and fill in the relevent paperwork, so I did!Everything went back from the French govt to England and it all disappeared down a black hole! it is now 2009 and I have declared in France for two years now, but due to incompetance I am now having to start again with the paperwork to get my Tax back! I am having to consult a Accountant because I am so terrified that if I get it wrong , the black hole will swallow everything again! PS I paid over £800 in tax in England last year that I should not have paid. I am very very fed up!!
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