I have an elderly client who receives a very good state pension and minimal untaxed interest. Historically this lady was under self assessment (SA) because even then her pension exceeded the personal allowance. Then HMRC wrote and said that after 2017-18 a SA tax return would not be required. I replied and explained that there would be a tax liability in subsequent years because of the level of state pension.
HMRC replied: ‘Any outstanding tax due on her state pension will be collected through simple assessment which will automatically be sent to (my client) at the end of each tax year.’ Neither my client nor I have heard anything from HMRC since. I calculate her tax due in recent years to be: 2018-19: £230.20; 2019-20: £165.00; 2020-21: £289.80; 2021-22: £267.40; 2022-23: £353.40; 2023-24: £643.00.
It would not surprise me if HMRC has completely lost track of my client. My...
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