MSE News: Millions of pensioners overpaying tax

Former_MSE_Guy

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 ..."


Read the full story:
Millions of pensioners overpaying tax

harz99

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

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.

pacemaker

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!!