MSE News: Pensioners hit by further HMRC tax code errors

Former_MSE_Guy

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

"146,000 pensioners underpaid tax in the current 2010/11 financial year, which the Revenue wants repaid ..."

Read the full story:
Pensioners hit by further HMRC tax code errors

NASA_2

They underpaid tax, they have to pay it back, over time.

Where is the problem?

Mikeyorks

Virtually all in this category receive a P2 (Coding Notice). Which says :

It is important that you make sure that we have got your tax code right. The Notes will help you do this. If you contact us we will need your National Insurance number and tax reference. Please keep your coding notices; you may need them if we send you a tax return.

Does no one check these any more or, as you will have kept the previous one, do a cross check.

Whilst there's little excuse for HMRC getting this wrong on the 3rd (?) coding issue from this system. There's an awful lot of personal contributory negligence going on. At the level of an individual on PAYE ..... it is not that difficult to know your PA and what is traditionally deducted from it.

John_Pierpoint

We have done this story already, it revolves round the inability of the computer to recognise pensioners achieving pension age & the age of 65. It is the "Joined up Government" problem again.

https://forums.moneysavingexpert.com/discussion/3135108

Rupert_Bear

Bad news on the affected pensioners but thats life. It happens. They have enjoyed the extra money and although it is not their fault it is pay back time.

ajrussell

My Grandfather received a nice letter stating they wanted to claim £1100 back by April 1st.

Thankfully I educated him in contesting it and playing dumb. After 15 minutes of playing 'dumb' they agreed to cancel the claim as they noticed an error on his file as they had not notified his previous employer that his tax code had changed.

Andrew

mikejd1

Why do the powers that be always blame the problems on a "computer fault" the computer is not at fault its the idiots who programme the computer. Computers as a rule only do what they are programned to do. And pensioners bare the brunt again. They way this country treats pensioners is utterly shameful.

down

I've said it before: Pensions were paid for and should not be taxed as they are not earnings.

Pennywise

down wrote: »

I've said it before: Pensions were paid for and should not be taxed as they are not earnings.

That's illogical. Following the same logic, if I invested in shares or a property, then the dividends/rents & gains shouldn't be taxed either. It's been the law for decades that pension income is taxable - it's nothing new and so pensioners should have factored in tax when planning for their retirement, just like an investor will factor in tax when considering what investments to buy.

down

For Pennywise: State Pension was only added to the tax system about 3 years ago plus you used to be able to take a lump sum tax free from a company pension on retirement, it also gets taxed, that was introduced arround 2008/2009.

dori2o

down wrote: »

For Pennywise: State Pension was only added to the tax system about 3 years ago plus you used to be able to take a lump sum tax free from a company pension on retirement, it also gets taxed, that was introduced arround 2008/2009.

:rotfl::rotfl::rotfl::rotfl::rotfl: