Age-related tax allowances, the taxation of savings and ‘convoluted’ PAYE forms have been identified by the Office of Tax Simplification as the areas of the tax system that cause the most problems for pensioners.
Age-related tax allowances, the taxation of savings and ‘convoluted’ PAYE forms have been identified by the Office of Tax Simplification as the areas of the tax system that cause the most problems for pensioners.
Announcing its interim report on pensioner taxation earlier this week, the OTS said pensioners had to navigate through ‘a maze of special tax rules and unfamiliar forms’.
‘Our report floats a number of possible ways forward to mitigate the difficulties pensioners face,’ said OTS Tax Director John Whiting. ‘We haven’t shied away from the big issues and I hope that this interim report helps stimulate a debate on pensioner taxation.’
Making the state pension exempt from income tax is one of a number of possible options, the report said.
The CIOT’s Low Incomes Tax Reform Group supported the review with a part time secondment of LITRG Technical Officer Kelly Sizer.
LITRG’s Technical Director, Robin Williamson, said: ‘With other changes in progress – for instance, increases in the state pension age and the forthcoming move to collection of PAYE “real-time information” for employees and pensioners – now is an excellent time to be addressing the issues. It is right, however, that the OTS’s interim report does not yet make firm recommendations on the knotty problems of age-related allowances and other pensioner issues, as the impact of change needs careful consideration.’
The OTS aims to make detailed recommendations ahead of Budget 2013.
Age-related tax allowances, the taxation of savings and ‘convoluted’ PAYE forms have been identified by the Office of Tax Simplification as the areas of the tax system that cause the most problems for pensioners.
Age-related tax allowances, the taxation of savings and ‘convoluted’ PAYE forms have been identified by the Office of Tax Simplification as the areas of the tax system that cause the most problems for pensioners.
Announcing its interim report on pensioner taxation earlier this week, the OTS said pensioners had to navigate through ‘a maze of special tax rules and unfamiliar forms’.
‘Our report floats a number of possible ways forward to mitigate the difficulties pensioners face,’ said OTS Tax Director John Whiting. ‘We haven’t shied away from the big issues and I hope that this interim report helps stimulate a debate on pensioner taxation.’
Making the state pension exempt from income tax is one of a number of possible options, the report said.
The CIOT’s Low Incomes Tax Reform Group supported the review with a part time secondment of LITRG Technical Officer Kelly Sizer.
LITRG’s Technical Director, Robin Williamson, said: ‘With other changes in progress – for instance, increases in the state pension age and the forthcoming move to collection of PAYE “real-time information” for employees and pensioners – now is an excellent time to be addressing the issues. It is right, however, that the OTS’s interim report does not yet make firm recommendations on the knotty problems of age-related allowances and other pensioner issues, as the impact of change needs careful consideration.’
The OTS aims to make detailed recommendations ahead of Budget 2013.
