25 October 2009
PENSIONERS PAY TOO MUCH TAX
Millions of pensioners in the UK are paying too much tax acording to a recent report by the National Audit Office. The average overpayment was £171 but unclaimed allowances could add as much as £600 to annual income.
Overpayment could arise for a number of reasons such as unclaimed allowances, mistakes by banks and building societies and miscalculation by HMRC.
Edward Leigh, Chairman of the Public Accounts Committee said that the report showed that HMRC and the Treasury needed to simplify the system.
Some 5.6 million pensiones are liable for income tax paying a total of £14.2 billion in 2006-07 enough to pay for a decent state pension and a decent level of care without means testing.
For the full report follow the external link below
