Below are the PAYE considerations. You can view the response which contains details of other areas of taxation for pensioners.
OTS Proposal
HMRC Response
Collecting tax – PAYE
As this is likely to be a longer term objective, HMRC could consider reviewing existing guidance on complex areas (K codes, for example) as a first step towards simplification
HMRC is continually reviewing its guidance on complex areas and is assisted in this work by external stakeholders
Eliminate errors remaining in NPS
HMRC is on track to clear all PAYE arrears by the end of 2012/13. On the basis of the information HMRC holds, tax codes are now over 98% accurate. PAYE gets things right in year for 85% of customers. The DWP State pension data feed and the information supplied from employers and pension providers, especially with the introduction of Real Time Information (RTI), will mean that HMRC gets more recent and accurate information on which to base tax codes. HMRC will continue to review the P2 process generally to identify and review improvements. The DWP State pension data feed and the information supplied from employers and pension providers will mean that we get more timely and accurate data on which to base tax codes. The introduction of RTI provides an opportunity to build on this in the future. The PAYE Regulations have been amended to provide for RTI and occupational pension payers will have to deduct PAYE under RTI in the same way that they do now. HMRC continues to look at potential changes to the P800 process This year HMRC started the
A single, reconciled statement to replace multiple P2 Coding Notices
Starting to receive a pension - HMRC should consider the operation of the PAYE Regulations together with RTI
Annual reconciliation and tax calculation forms 'P800'
reconciliation process for the tax year ended April 2012 two months earlier than previous years so that many customers will get their money back quicker. This also provides certainty sooner for those who have additional tax to pay. usually recovers the underpayment automatically in 12 monthly instalments over the subsequent tax year through the customer’s annual tax code. Where this causes financial difficulty, people may be able to
Where tax is underpaid, HMRC
CIPP Policy News Journal
12/04/2013, Page 273 of 362
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