HMRC has implemented a number of improvements to make things easier for pensioners, the Office for Tax Simplification said on Friday as it published HMRC’s response to an interim report, published in March, on the review of pensioner taxation.
The interim report set out ‘the full scale of the task facing pensioners who have to navigate through a maze of special tax rules and unfamiliar forms’, and said that making the state pension exempt from income tax was one of a number of possible options.
The OTS said it would explore technical and administrative simplifications before making final recommendations to the chancellor. It now expects to report in January.
The recent improvements include a new electronic data link with the Department for Work and Pensions to provide more accurate data on pensions, the OTS said. ‘This means HMRC is able to update records more quickly, so that more pensioners are taxed correctly on state pensions.’
John Whiting, tax director at the OTS, said: ‘It’s encouraging to see HMRC is taking steps to improve things for pensioners as a direct result of our work. Whilst this is certainly a step in the right direction, we hope HMRC, and indeed the chancellor, will build on this start when our final report is published early next year. The OTS, the government and HMRC all share a common objective here: getting to a simpler tax system for pensioners in the future.’
HMRC has implemented a number of improvements to make things easier for pensioners, the Office for Tax Simplification said on Friday as it published HMRC’s response to an interim report, published in March, on the review of pensioner taxation.
The interim report set out ‘the full scale of the task facing pensioners who have to navigate through a maze of special tax rules and unfamiliar forms’, and said that making the state pension exempt from income tax was one of a number of possible options.
The OTS said it would explore technical and administrative simplifications before making final recommendations to the chancellor. It now expects to report in January.
The recent improvements include a new electronic data link with the Department for Work and Pensions to provide more accurate data on pensions, the OTS said. ‘This means HMRC is able to update records more quickly, so that more pensioners are taxed correctly on state pensions.’
John Whiting, tax director at the OTS, said: ‘It’s encouraging to see HMRC is taking steps to improve things for pensioners as a direct result of our work. Whilst this is certainly a step in the right direction, we hope HMRC, and indeed the chancellor, will build on this start when our final report is published early next year. The OTS, the government and HMRC all share a common objective here: getting to a simpler tax system for pensioners in the future.’
