Pensioners get shock tax demands

Some people may wish to contact their accountant after it was revealed that HMRC is under fire again; this time for its heavy handed approach towards pensioners.

The Revenue recently sent out letters to taxpayers demanding payment within one month for sums they had previously been told could be settled over a period of up to 3 years. Many of these demands have been sent to low income pensioners.

The majority of the people affected are among the 1.4m who received tax demands after the Revenue admitted that millions of income tax bills were incorrect.

One company director pointed out that something is seriously wrong. People in vulnerable groups, who have little cash to spare are having the life scarred out of them.

One pensioner received a letter at the beginning of February giving him until March 5th to pay £2,865.20. Another 66 year old man was informed on the 18th of February that he had to pay £1,413.58 by the 21st of March.

In other cases, people have received demands even though they have already paid up. Furthermore, people who have disputed their bill have now received an even larger one.

HMRC originally advised people that the debt could be spread over 12 months, through a tax code adjustment, if it was under £2,000. For larger bills, taxpayers were given until January 31st 2012 to settle.

A spokesman for HMRC said that the department recognises that it may be difficult for people to settle in one lump sum. The tax owed could be included in a new tax code or a payment plan can be implemented. Any customer who wants to discuss the options should call 0845 3000 627.

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