{"id":355590,"date":"2026-01-06T18:22:10","date_gmt":"2026-01-06T18:22:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/355590\/"},"modified":"2026-01-06T18:22:10","modified_gmt":"2026-01-06T18:22:10","slug":"hmrc-sending-unwelcome-letter-to-two-million-state-pensioners","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/355590\/","title":{"rendered":"HMRC sending &#8216;unwelcome letter&#8217; to two million state pensioners"},"content":{"rendered":"<p>The number of people receiving end-of-year tax demands from HMRC has soared to over 1.3 million, with experts warning the figure could reach 2 million as the personal allowance freeze continues to affect state pensioners<\/p>\n<p>James Rodger Content Editor<\/p>\n<p>12:21, 06 Jan 2026<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/01\/0_HMRC-Tax-letter.jpg\" alt=\"London, UK - Macro image of a tax letter in an envelope from HM Revenue and Customs.\" loading=\"eager\"  \/>Over 1.3 million individuals have been hit with end-of-year tax demands from HMRC(Image: georgeclerk via Getty Images)<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">Over 1.3 million individuals have been hit with end-of-year tax demands from <a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.chroniclelive.co.uk\/all-about\/hmrc\" target=\"_blank\" aria-label=\"HMRCLink opens in a new tab.\" rel=\"follow nofollow noopener\" tabindex=\"0\">HMRC<\/a>, according to a Freedom of Information (FOI) request submitted by LCP partner Steve Webb, which has highlighted a significant increase in those affected.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">The FOI reveals that during the 2023\/24 financial year, over 1.3 million people received such demands, nearly double the figure from just two years prior. A large proportion of these are for relatively minor amounts, with nearly a quarter being for less than \u00a3100, though almost a quarter exceed \u00a31,000.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">These bills impact those who have fairly straightforward tax affairs (thus not requiring a tax return) but where there is no <a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.chroniclelive.co.uk\/news\/cost-of-living\/key-hmrc-income-tax-2026-33150884\" target=\"_self\" aria-label=\"\" rel=\"follow nofollow noopener\" tabindex=\"0\">PAYE<\/a> code available to collect the tax due on their income. An example would be a state pensioner whose pension exceeds the tax threshold and therefore owes tax, but who doesn&#8217;t have a private <a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.chroniclelive.co.uk\/all-about\/pensions\" target=\"_self\" aria-label=\"\" rel=\"follow nofollow noopener\" tabindex=\"0\">pension<\/a> and hence no PAYE code.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">The freezing of the personal tax allowance has triggered this surge, with the number leaping from 758,000 in 2022\/23 to 1,321,000 in 2023\/24. (It should be noted that self-assessment demands for 2024\/25 are issued during 2025\/26, so final figures for 2024\/25 are not yet available).<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">Given that the state pension has seen a further 13% increase between April 2023 and April 2025, it&#8217;s suggested that the number of people receiving simple assessment demands is likely to have risen even more and could surpass the 2 million mark, reports <a class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.birminghammail.co.uk\/news\/cost-of-living\/two-million-state-pensioners-set-33170867\" target=\"_self\" aria-label=\"\" rel=\"follow nofollow noopener\" tabindex=\"0\">Birmingham Live<\/a>.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">Offering his perspective, former Liberal Democrat Pensions Minister Webb, who is now a partner at pension consultancy LCP, remarked: &#8220;For many people, having to deal with the tax office is a hassle they can do without. But the continued freezing of the income tax personal allowance means that the numbers getting unwelcome end-of-year tax demands have soared.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">&#8220;Many of these people will be pensioners whose only income is the state pension, and they now get an annual tax demand, with the amounts growing each year.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">&#8220;Although the Government has indicated it may address this issue for a subset of pensioners from 2027, a much wider-ranging solution is needed&#8221;.<\/p>\n","protected":false},"excerpt":{"rendered":"The number of people receiving end-of-year tax demands from HMRC has soared to over 1.3 million, with experts&hellip;\n","protected":false},"author":2,"featured_media":355591,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,2218,4174,4175,56,54,55],"class_list":{"0":"post-355590","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-hmrc","11":"tag-personal-finance","12":"tag-personalfinance","13":"tag-uk","14":"tag-united-kingdom","15":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/355590","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=355590"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/355590\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/355591"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=355590"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=355590"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=355590"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}