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State pension WIN as HMRC to refund 3.2 million retirees after tax scandal - are you eligible?

gbnews.com · 8h · first reportShare

Some 3.2 million retirees are set to receive tax rebates from HM Revenue and Customs (HMRC) after being overcharged on their state pension for more than 15 years. The refunds, which average roughly £6 per person and amount to an estimated £19million in total, will be backdated to the 2020-21 tax year. The miscalculation, brought to light by The Telegraph, affected individuals who paid income tax on their state pension, with millions subjected to inflated charges since 2010. Under HMRC's own rules, the calculation should apply one week at the previous year's lower rate and 51 weeks at the current year's higher rate, reflecting the brief gap between the start of the tax year and the Monday when new pension rates take effect. Instead, HMRC had been taxing some retirees on 52 weeks at the elevated rate, relying on figures supplied by the Department for Work and Pensions (DWP). This approach resulted in a marginally inflated tax bill each year, compounding across millions of pensioners over