\n HMRC previously admitted that an error dating back to changes made to its PAYE system in 2010 meant incorrect State Pension figures were used when calculating some people’s tax bills.\n<\/p>\n
\n The mistake affected PAYE end-of-year reconciliations, as well as some Self Assessment tax returns and Simple Assessment calculations, potentially leaving hundreds of thousands of pensioners paying too much tax.\n<\/p>\n
HMRC says many people will not have lost money<\/p>\n
\n In a letter to the Chair of the Public Accounts Committee, John-Paul Marks, Permanent Secretary, explained that not every error resulted in overpaid tax, but said: “I apologise for this error and especially to those pensioners who have been affected.\n<\/p>\n
\n “I know that any shortfall matters, particularly to customers on fixed or limited incomes.\n<\/p>\n
\n “I would like to reassure the Committee that HMRC is taking this issue very seriously and we are working at pace to put in place a solution.\u201d\n<\/p>\n
\n HMRC says it is working to correct the issue permanently.\n<\/p>\n
\n The department has pledged to introduce a solution that ensures future tax calculations use the correct State Pension figures, while also correcting affected PAYE, Self Assessment and Simple Assessment records for the 2025\/26 tax year.\n<\/p>\n
\n However, there is still no simple way for pensioners to check whether they personally have overpaid tax because of the error.\n<\/p>\n
\n HMRC says it will provide further information once it has completed work on identifying everyone affected and how any refunds will be issued.\n<\/p>\n
\n Recommended reading\n<\/p>\n
What can pensioners do?<\/p>\n
\n For now, most pensioners do not need to contact HMRC.\n<\/p>\n
\n If you are concerned, it is worth checking your latest tax calculation and comparing the State Pension income shown by HMRC with the amount you actually received.\n<\/p>\n
\n If the figures appear incorrect, you can contact HMRC for an explanation, but the department says it is still finalising its approach to identifying affected taxpayers and issuing refunds.\n<\/p>\n
\n While HMRC estimates that most overpayments are likely to amount to only a few pounds a year, some pensioners may be entitled to larger refunds depending on their individual circumstances.<\/p>\n","protected":false},"excerpt":{"rendered":"HMRC previously admitted that an error dating back to changes made to its PAYE system in 2010 meant…\n","protected":false},"author":2,"featured_media":698908,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-698907","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/698907","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=698907"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/698907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/698908"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=698907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=698907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=698907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}