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HMRC won't agree!!!
Mark quite rightly surmises that there will be many who have over[paid & are unaware.However,a Revenue inspector who lived in my village some years ago stated that it was "generally known"that more tax was underpaid than overpaid!He could not prove this to me of course & I told him politely that I did not share his opinion!!!
Oppression of the poor
I can only depress Mark further by telling him that his story and countless similar are everyday work for TaxHelp for Older People and we are aware that we are only tackling the tip of the iceberg. Also as Edward observes, the errors that we see are 90% in favour of the Treasury - and we back that assertion up by opening our records to HMRC.
Pension tax issues
I was aware that those of us with military pensions had a differing background to that explained in either your article or that at the HMRC website. My recollection is that there was some lobbying and as a result 'military' pensions were paid 'free of tax' and then all tax affairs were rolled up later in the year when the full tax implications were understood.
Trouble is, there are so many changes or other interpretations that things get muddled or changed regardless. Then everyone is in a mess! Mind, those who lose out most are seemingly always the lower end earners. Why ever should that be - bullying or something similar maybe?
Also it is always helpful if you can afford an expensive Accountant or Tax advisor to find their way through the muddle for you! Making jobs for whom maybe a good question too.
Then God forfend - we are further discriminated against by Mr Brown and his recent budget 'spun' - making the tax bill lower and simpler - how can these people be so dishonest. For sure that is what it is! Trust - why should anyone trust them? Don't 5 million plus people matter - one might also ask or did someone just 'save his job' by making his/her targets somehow?
CAV
What about overpayments?
I am a part time self employed bookeeper, who was horrified to discover that my 83 year old mother in law who has an occupational widows pension of some £1500 per year to add to her state pension was being taxed on a BR tax code, and has been for the past 5 years (since she was widowed). Her initial reaction was "it must be right" followed by "dont make a fuss". I wrote on her behalf to HMRC to be greeted with a heap of forms. Again I had to overcome her reluctance to continue with the cause. I perservered and have won her a refund of over £1300.
I am concerned that she is not alone. How many other OAPs are there out there, who dont have someone who has the knowledge to challenge such mistakes? I am afraid that senior citizens when confronted with a barrage of forms or letters from HMRC written in official language either panic or just ignore them. For every one who underpays tax, I am sure there are many others who overpay, and they are probably those who can least afford to make large gifts to HMRC.
Mark
Pensioners
I have been in pensions for many years- mainly on the occupational side of things.
Its good to see that HMRC are taking a balanced view on this- as most pensioners seem to really stuggle.
However, one large oil company that I worked for - had an agreement with HMRC that the first month's pension payment for all new pensioners - would not be subject to tax.-
Another company did not pay the widowers Post 88 GMP.- everyone else does - but for some reason "they didn't have to".