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Millions of pensioners could be owed money after HMRC mistake
HM Revenue & Customs will correct cases automatically, with repayments averaging about £6 each and covering tax years from 2020/21 onward.
- Around 3.2 million pensioners are set to receive tax refunds from HMRC totaling around £19.3 million following a calculation error in state pension tax assessments, averaging roughly £6 per person though amounts will vary.
- The error stemmed from HMRC incorrectly applying the higher pension rate to all 52 weeks of the tax year instead of using one week at the previous rate and 51 weeks at the increased rate, overstating annual pension income figures.
- Pensioners do not need to apply for the correction, as repayments will be handled automatically through PAYE adjustments, Self Assessment credits or other payment methods, covering affected cases from the 2020/21 tax year onwards.
- Tax specialist Andy Wood from Tax Barrister UK cautioned the error was difficult for pensioners to spot and emphasized "Pensioners should be able to trust that the income figure used to work out their tax is correct."
- The automatic correction does not cover tax years before 2020/21 due to insufficient data, though people concerned about earlier years can request individual reviews; Andy urged HMRC to clarify boundaries so pensioners understand which years were addressed.
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Wilts & Gloucestershire Standard+14 Reposted by 14 other sources
Millions of pensioners could be owed money after HMRC mistake
Around 3.2 million pensioners are due HMRC refunds after a state pension tax calculation error. Find out who is affected and what happens next.
·Stroud, United Kingdom
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More than three million people who paid too much tax on their state pension will receive a refund from HMRC.
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