Taxman and Pensioners

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81860510#Comment_81860510

That's a very good point!

My dad does have some savings. His monthly income goes on his carehome. The council pay towards his care also. They know about his savings and they worked everything out.

If the council tops up his monthly income in order to cover the fees, it shouldn't ultimately matter if that income is reduced to pay back underpaid tax, as it'll presumably just mean that the council contribution will increase by the same amount?

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81860313#Comment_81860313

which would be fair.

Grumpy_chap

Will paying this income tax actually make a difference to the OP's father?

If his pension income goes to pay for his care home after allowing for "pocket money" and the balance is topped up by the LA, then the change of tax code will reduce his income, the "pocket money" will remain the same, the LA will increase their top up.

Or have I missed something?

sheramber

I think the OP is objecting to his father having to pay the underpaid tax due to dementia causing it.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81860713#Comment_81860713

That might have been a valid argument if HMRC had been levying some sort of fines, penalty charges or interest, but if they're simply seeking recovery of the income tax that he was legally obliged to pay then it doesn't really matter what the reason for the underpayment was.

Jinito

Thanks folks you have made good valid points.