HMRC giving pensioners 'poor service'

Pensioners are being poorly served by HM Revenue & Customs (HMRC), it has been suggested.

A report issued by the House of Commons Committee of Public Accounts found that many elderly people pay tax that they do not have to.

It was recommended by the committee that HMRC should develop easier systems to ensure that older individuals had "peace of mind" about their tax affairs and they should try to make sure that they are well-versed in their options.

The study noted that an estimated 1.5 million older people have overpaid tax by £250 million due to inconsistencies between the department's records and those of their bosses and pension providers.

Robin Williamson, technical director of the Low Incomes Tax Reform Group, stated that the current system needs to be overhauled in favour of a new proactive approach, which would try to identify those people who have been overpaying and underpaying.