PENSIONERS waiting to find out whether they are owed a tax refund have received a fresh update after HMRC's boss wrote to MPs about the long-running State Pension tax error.
HMRC previously admitted that an error dating back to changes made to its PAYE system in 2010 meant incorrect State Pension figures were used when calculating some people's tax bills.
The mistake affected PAYE end-of-year reconciliations, as well as some Self Assessment tax returns and Simple Assessment calculations, potentially leaving hundreds of thousands of pensioners paying too much tax.
HMRC says many people will not have lost money
In a letter to the Chair of the Public Accounts Committee, John-Paul Marks, Permanent Secretary, explained that not every error resulted in overpaid tax, but said: "I apologise for this error and especially to those pensioners who have been affected.
"I know that any shortfall matters, particularly to customers on fixed or limited incomes.
"I would like to reassure the Committee that HMRC is taking this issue very seriously and we are working at pace to put in place a solution.”
HMRC says it is working to correct the issue permanently.
The department has pledged to introduce a solution that ensures future tax calculations use the correct State Pension figures, while also correcting affected PAYE, Self Assessment and Simple Assessment records for the 2025/26 tax year.
However, there is still no simple way for pensioners to check whether they personally have overpaid tax because of the error.
HMRC says it will provide further information once it has completed its work to identify everyone affected and determine how any refunds will be issued.
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What can pensioners do?
For now, most pensioners do not need to contact HMRC.
If you are concerned, it is worth checking your latest tax calculation and comparing the State Pension income shown by HMRC with the amount you actually received.
If the figures appear incorrect, you can contact HMRC for an explanation, but the department says it is still finalising its approach to identifying affected taxpayers and issuing refunds.
While HMRC estimates that most overpayments are likely to amount to only a few pounds a year, some pensioners may be entitled to larger refunds depending on their individual circumstances.
