HMRC Tax War Pensions

#1
FYI, HMRC are trying to tax ex servicemen's and war widows' pensions, even though they are non taxable:

"...186,115 injured armed forces veterans and war widows have received letters from HMRC telling them that they will be taxed at 20% on their war pensions (war pensions actually have a not taxed (NT) status).

The letters were sent in error, as a result of "computer error" (isn't it funny how computers are always blamed, yet it is a human that designs and programmes them?).

Will HMRC be correcting this error?

Yes...but only after the ex servicemen and their widows contact HMRC first (ie HMRC will not correct the error automatically)..."

http://hmrcisshite.blogspot.com/2010/01/hmrc-dies-another-day.html
 

oldbaldy

LE
Moderator
#2
There has been faulty tax codings, well documented elsewhere & I received a faulty code.
However:
I did not receive one for my War Pension & as I'd heard about this when I spoke to the Tax Office the very helpful lady told me she had heard nothing about it, there was no reference to my War Pension on my tax file and when she checked her lists of income that was taxable it was not mentioned.
There may be problems but I do not believe this story & have yet to hear of any War Pensioner who has received one of these letters.

I suspect it may relate to a Service Attributable Pension which is also not taxed but is a completely different beast.
 

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