A new report has revealed that millions of state pensioners in the UK may be overpaying tax on their pensions. According to the research, a significant number of pensioners are having too much tax taken from their state pensions, resulting in overpayment and potential refunds.
The report, conducted by the charity Age UK, found that 1.2 million pensioners are being overcharged by an average of £140 per year. This adds up to a total of £168 million in overpayment annually.
The charity is urging HMRC to review its tax codes to prevent overpayment and ensure that pensioners are receiving the correct amount of tax-free allowance. Currently, pensioners are entitled to a £2,000 tax-free allowance on their state pensions, but many are not aware of this and are being overcharged as a result.
The impact of this overpayment is significant, with many pensioners struggling to make ends meet. Age UK is calling for HMRC to take immediate action to rectify the situation and prevent further overpayment.
In a statement, the charity said: 'We are concerned that millions of pensioners are being overcharged on their state pensions. We urge HMRC to review its tax codes and ensure that pensioners are receiving the correct amount of tax-free allowance.'
The news has sparked concerns among pensioners and tax experts, with many calling for greater transparency and clarity on tax codes.