Pensioners over-taxed claims pressure group

The Inland Revenue is at fault for thousands of pensioners overpaying tax according to the Low Incomes Tax Reform Group.

The pressure group said that the problems have arisen because many pensioners are not receiving the tax allowances they are entitled to because incorrect tax code notices are being issued.

John Andrews of the LITRG, which was established to give a voice to those in society without the means to afford professional tax advice, said that form P161 is at the heart of the problems. Form p161 is sent to pensioners on retirement to gather details on income.

‘Nearly all of these problems arise due to Revenue or DWP processes and a lack of effective liaison between the two,’ Andrews told The Daily Telegraph. ‘All of these issues can lead to pensioners landing themselves in debt unexpectedly.’

A Revenue spokesman said that form P161 does state that not returning it, the problem at the heart of the issue, could result in the wrong amount of tax being paid.

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