A simple measure, which would have prevented many low-income pensioners from overpaying tax unnecessarily on their pensions, has been postponed by Gordon Brown in order to save costs for the life industry, reports the Low Incomes Tax Reform Group (LITRG).
HMRC’s latest revision of their Code of Practice (COP) on complaints fails to address the needs of the unrepresented taxpayer or tax credit claimant says LITRG. In June the Revenue published the revised version of COP1, or 'Putting things right. How to complain'.
LITRG urges tax credit claimants on low incomes, whose payments have been delayed even though they applied in good time, to claim compensation from HMRC, if appropriate, for costs they incurred as a result of the delay.
This report published in January 2001 looks at the problems that students face with the current tax system and recommends a set of measures geared towards treating students as a separate category of customer within the Inland Revenue.
LITRG broadly welcome the Government proposals to simplify the taxation of pensions as 'support for tomorrow's pensioners', but question whether they will encourage the low paid to save for their retirement through pensions.