After hundreds of thousands of pensioners were hit with shock bills last year, with many falling victim to a complicated and intimidating tax system, major reforms are being discussed by a government-appointed body.
Revenue & Customs used aggressive force
The chosen body is the Office of Tax Simplification (OTS) which has been collecting evidence on the mayhem that has surrounded pensioners since HM Revenue & Customs used aggressive force to collect the tax that they had failed to obtain in the past.
The misunderstanding surrounding the tax has meant that some pensioners are paying too much, because they are not claiming allowances and reliefs that many have a right to. Then there are the others who are paying less, which leaves them facing shocking bills.
HMRC computer and poor service
A new HMRC computer had put together records from different tax offices and this left pensioners confused and starring at unexpected tax demands. The service given to pensioners has been so neglected that helplines have not been answering calls.
Those in need of help are instead directed to an internet site which is useless to much of the older generation who are typicallly less web-savvy. This is backed up by the Office for National Statistics which has said that 60% of pensioners never use the internet.
The excuse given to the pensioners by the government’s own website ‘direct.gov.uk’ has said: “If you have several sources of employment and/or pension income that are taxed through PAYE at the same time, it can get confusing.”