TaxPersonal TaxPension provider admits to tax error

Pension provider admits to tax error

Prudential admits to under-paying tax on behalf of 5,500 annuity holders, but rules out offering compensation to victims of the error

Thousands of retired people will have to cough up extra this year to foot a
bigger tax bill owing to an error made by pension provider
Prudential.

Prudential has so far written to 5,500 annuity holders warning them of an
increase in their tax this year to make up for previous under-payments.

The error relates to annuities, paid out monthly upon retirement following
regular payments by the insurer.

Predential said the problem arose due to ‘human error in compiling the
information in a computer coding system that we sent to HM Revenue &
Customs’.

The insurer, according to The Guardian, has ruled out offering
compensation to its clients.

Further reading:

Pru
admits tax error but refuses compensation

Pru
blunders tax bill

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