- HMRC has overcharged up to 8.7 million pensioners on their tax bills, collecting an estimated £43.5 million in error last year, with people typically paying around £5 more.
- The error originated from HMRC's failure to correctly account for the annual increase in the state pension under the triple lock, resulting in state pension income being recorded £9.05 higher than it should have been.
- This miscalculation impacted pensioners who pay income tax through self-assessment and those still in employment who pay via Pay As You Earn (PAYE).
- HMRC has apologised for the mistake, stating they have been working to resolve the issue since last year and aim to implement a fix later this summer.
- The shadow chancellor has urged HMRC to disclose the exact number of affected pensioners and to begin actively issuing refunds, following reports that the issue was raised with HMRC last August.
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