HMRC to send Simple Assessment tax statements to pensioners

HMRC will send Simple Assessment tax statements to pensioners in the next few weeks.

This action is due to the combination of static tax thresholds and a significant state pension increase, resulting in many pensioners paying income tax for the first time.

The personal allowance has been maintained at £12,570 by the Conservative government until 2028.

The full new state pension was boosted by 10% in April 2023 to over £10,600 annually, and it experienced another 8.5% rise in April 2024, reaching more than £11,500 per year.

HMRC will send a Simple Assessment to pensioners who have an income tax underpayment for a tax year that cannot be automatically collected through PAYE and who are not part of the income tax self-assessment.

Income tax underpayments may occur for pensioners who have income from various sources such as the State Pension, occupational pensions, employment pensions, and most taxable state benefits, or for those with up to £10,000 of untaxed income from savings or investments.

HMRC will utilise the information it has, along with data provided by banks and building societies, to assess your income and tax situation.

The tax authority will determine any tax owed or refund due, and the Simple Assessment tax statement will detail the calculation.

HMRC advises taxpayers to verify the accuracy of their Simple Assessment statements before settling any tax owed.

 

July 2024