Age UK statement on HM Revenue and Customs tax code error

28 March 2011

Commenting on an HMRC error resulting in over 140,000 older people being in the wrong tax code, Andrew Harrop, Head of Policy and Public Affairs at Age UK said:

'Coming at a time when many pensioners are feeling financially stretched, HMRC's error will be a source of serious concern for older people on modest incomes.

'When the taxman makes mistakes, older taxpayers should not have to pay the price, and we would have liked to have seen the repayments written off. It is essential that those affected are informed as soon as possible, allowing them time to put money aside for the extra cost.

'If HMRC has no option but to collect underpaid tax, they should at the very least ensure people are informed that if their income goes down because they are paying more tax, they may be entitled to benefits they weren't previously able to claim. Help should also be offered to spread the payments over a longer period if it will be difficult for the individual to repay them.'

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