TaxPersonal TaxOlder people unable to deal with tax complexity

Older people unable to deal with tax complexity

Report claims older people don't understand the system and are paying too much tax

HMRC is making the tax system too complex for older citizens, resulting in
many paying too much tax, a report by the National Audit Office has found.

The complexity of the system has resulted in an estimated 1.5m older people
having overpaid their taxes and 500,000 under paying
myfinances.co.uk
reported.

Amyas Morse, head of the National Audit Office, said: “Older people want to
pay the right amount of tax but too many pay more than they need to because they
do not claim allowances to which they are entitled and because of errors.”

It is estimated 3.2m did not claim additional allowances as they did not
realise they were entitled to them.

NAO claims allowances will increase the average income by up to 4%.

HMRC is to implement a computer system next year to address the problem.

Further reading:

OAPs race with death to amnesty finish line

Related Articles

HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

6d Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

3m Emma Smith, Managing Editor
Rangers tax case to have ‘dramatic’ consequences for football and business

Legal Rangers tax case to have ‘dramatic’ consequences for football and business

4m Emma Smith, Managing Editor
Finance Bill 2017: Corporate tax reporting requirements 'a burden'

Business Regulation Finance Bill 2017: Corporate tax reporting requirements 'a burden'

10m Stephanie Wix, Writer
PAC raises “serious concerns” about HMRC’s digital plans

Corporate Tax PAC raises “serious concerns” about HMRC’s digital plans

11m Stephanie Wix, Writer
HMRC collects record £5bn in inheritance tax

HMRC HMRC collects record £5bn in inheritance tax

4m Emma Smith, Managing Editor
The top three issues that the next government must address for accountants

Making Tax Digital The top three issues that the next government must address for accountants

4m Emma Smith, Managing Editor
HMRC cuts over 150 offices to reduce running costs

Corporate Tax HMRC cuts over 150 offices to reduce running costs

9m Stephanie Wix, Writer