MSE News: Happy new tax year! The winners and losers

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This is the discussion thread for the following MSE News Story:

"Find out whether you'll be better or worse off following the annual April tax, NHS, phone and postal charges changes ..."

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  • whaylock
    whaylock Posts: 30 Forumite
    First Post First Anniversary Combo Breaker
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    Can I issue a warning to MSE readers in the new tax year. I am a pensioner and I recently received my tax code for my pension in 2010/11. I noticed that it was incorrect as it had not given me my age allowance even though my income was below the income threshold for reducing age allowance. When we contacted HMRC, they said that they had estimated that my income for the year would be more than £27000 - this in spite of the fact I am a pensioner and my income in the year 2009/10 was below the maximum income before they cut age allowance ( that figure is around £21000). How they can justify assuming that my income, as a pensioner, is going to increase by 30% I do not know. Had I not noticed I would have been taxed at this level until I sent in next year's return and, if I hadn't claimed a rebate, I would have paid more than was due. I think they are doing this to bring in as much money as possible and they hope that you wont notice. If you are a pensioner, make sure that they don't overcharge you or you will end up receiving less pension than you are due.

    Chorister
  • John_Pierpoint
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    It is c0ck up or conspiracy.
    I think this is c0ck up, perhaps caused by the new computer system?
  • Mikeyorks
    Mikeyorks Posts: 10,369 Forumite
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    whaylock wrote: »
    When we contacted HMRC, they said that they had estimated that my income for the year would be more than £27000 -

    In such a case the P2 very clearly states that they are working to the assumption your income exceeds £28930? And, equally clearly, invites you to contact them if it's likely to be less.

    It's not exactly covert ......... as it's on the P2 in at least 2 separate places
    If you want to test the depth of the water .........don't use both feet !
  • RayWolfe
    RayWolfe Posts: 3,045 Forumite
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    whaylock wrote: »
    I think they are doing this to bring in as much money as possible and they hope that you wont notice.
    Frightening. How do people get to this state of paranoia?

    I blame the DM.
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