Taxation move for pensions welcome
● A WIDNES chartered accountant has applauded a Government action which means new state pensioners in Halton will no longer need to provide information through a self assessment tax return.
HMRC is now using existing data it already holds on two groups to calculate what tax is owed.
Those in the borough who no longer have to provide information through a tax return are new state pensioners with income more than the personal allowance in the last tax year, and PAYE earners who underpaid and cannot have tax collected through their tax code.
In addition, all existing state pensioners who complete a tax return due to their state pension being more than their personal allowance will be removed from self-assessment from next April.
Simple Assessment took effect from September 2017, with HMRC currently writing to customers with a tax calculation using P800 or PA302 forms.
The letter outlines an individual’s salary, pension, state benefits, savings interest and employee benefits.
Those who fall into this bracket only need to check if the information is correct and pay their tax bill either online or by cheque before the deadline provided.
If the information is incorrect, customers have 60 days to contact HMRC and make amends.
Failure to pay the tax bill on time could lead to a financial penalty.
Nigel Holland, of Holland & Co Chartered Accountants on Widnes Road, said: “The Government are working together with HMRC to help reduce the red tape which currently exists for state pensioners. “This action is to be applauded. “The form P800 is a much simpler form than a self assessment and there is no need for state pensioners to complete a full self assessment when a form P800 can be completed instead.”