Tag: pensioners

From pensioners to teenagers, HMRC reveals who files a tax return

HMRC has revealed that more pensioners filed a tax return for the 2020 to 2021 tax year compared to young people.

Overall, those aged 65 and over accounted for 16% of individuals who submitted a tax return, whereas 16 to 24 year olds made up 2.7% of total filers.

The new data is part of analysis by HMRC into the demographic data of the Self Assessment population.

The findings also show:

  • people aged 45 to 54 were the largest group of filers, accounting for 24% of all tax returns submitted
  • more than 294,000 16 to 24 year olds filed a return, making up 2.7% of total filers
  • 62% of those who submitted a return last year were men, compared to 38% who were women

The data also showed that almost 146,000 people submitted their tax return at the earliest opportunity between 6 and 11 April 2021.

More than 12 million people are expected to file a Self Assessment tax return for the 2021 to 2022 tax year. Anyone yet to submit theirs has until 31 January to complete it, pay any tax owed or set up a payment plan, or risk having to pay a penalty.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for anyone who has yet to start their tax return – there is a wide range of guidance and webinars available online for those who need a helping hand. Just search ‘Self Assessment’ on GOV.UK to make a start.“

Payments are also due on 31 January and customers still have time to decide which payment option is best for them. For customers who are due a refund, they should include their bank account details in their tax return so that if HMRC needs to repay them, it can be done quickly and securely.

Customers can now use the free and secure HMRC app to make Self Assessment payments, as well as accessing information which they need to complete their tax return, including their Unique Taxpayer Reference (UTR), National Insurance number and employment history.

Those who are unable to pay their tax bill in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay. Customers should try to do this online; go to GOV.UK for more information. Alternatively, they can contact the helpline.

HMRC has a wide range of resources to help customers complete their tax return, including guidance, webinars and YouTube videos.

Customers need to be aware of the risk of scams as criminals use Self Assessment as an opportunity to commit fraud. Customers should check HMRC’s scams advice on GOV.UK.

No more Nasty Party? Amber Rudd softens approach to disabled pensioners

Hundreds of thousands of disabled pensioners will no longer have to go through unnecessary reassessments for disability benefits, Work and Pensions Secretary Amber Rudd announced yesterday. While charities welcomed the announcement, they argue that the measures just don’t go far enough. Continue reading No more Nasty Party? Amber Rudd softens approach to disabled pensioners

Parents and people with disabilities hardest hit by welfare reforms

‘This latest evidence shows that some of those most in need of support, namely parents and disabled people are being hardest hit. For us to be in this situation in 21st century Scotland is unacceptable.’ – Michael McMahon MSP 

ChildPoverty

Parents and people with disabilities are being hit hardest by the UK Government’s programme of welfare reform according to new research commissioned by the Scottish Parliament’s Welfare Reform Committee.

The report, published yesterday, represents the first time the impact of the UK Government’s welfare reform agenda on different household types in Scotland has been quantified.

The research for the Committee was conducted by Professors Christina Beatty and Steve Fothergill of the Centre for Regional Economic and Social Research at Sheffield Hallam University.

The new evidence shows that in Scotland, it is estimated that couples with dependent children will lose an average of more than £1,400 a year, and lone parents with dependent children stand to lose an average of around £1,800 a year from their income stream. 

In all, families with children will lose an estimated £960m a year – approaching two-thirds of the overall financial loss in Scotland.

Disabled claimants and those with health problems have also been shown to be disproportionately affected. Reductions in incapacity benefits are estimated to average £2,000 a year, and some of the same people also face big losses in Disability Living Allowance and reductions in other benefits.

Committee Convener Michael McMahon MSP said: “The Welfare Reform Committee has amassed a growing volume of evidence documenting the impact of the welfare reform agenda on Scotland’s communities. This latest evidence shows that some of those most in need of support, namely parents and disabled people are being hardest hit. For us to be in this situation in 21st century Scotland is unacceptable.”

The report also shows that almost half the reduction in benefits might be expected to fall on in-work households. 

Deputy Convener, Clare Adamson MSP said: “The Scottish Government is to be commended for introducing measures to alleviate some of the worst effects of the welfare reform agenda. New powers over a range of benefits are due to be given to Holyrood in the coming years and this research will help direct those new powers to help those most in need of support.”

Until now, there has been no way to assess the impact across the various benefits on different types of households. Because of the cumulative impact of people being affected by several different benefit streams, the overall impact of welfare reforms has been hidden.

The statistics are expected to become an essential tool for government and local authorities in shaping targeted responses and service delivery.

The research follows two previous reports which measured the financial impact of welfare reform on Scotland as a whole and by local authority area, and the impact down to ward level.

The Committee expects to hear oral evidence on this report at its meeting on 10 March. 

Professor Steve Fothergill, of the Centre for Regional Economic and Social Research at Sheffield Hallam University, said: “The figures demonstrate that the welfare reforms impact very unevenly.  The very big impact on families with children, in particular, has previously been under the radar because it is the cumulative result of several individual reforms. Coalition ministers have argued that “we’re all in it together”.  The impacts of welfare reform, documented in our report, show this is far from being the case.”

Letter: Warning – pensions under attack

Dear Editor

Pensioners of today and tomorrow, be aware: the government is laying the ground for further attacks on pensions and pensioners benefits.

First, they have to divide opposition, for example by saying they wish to be fair by stopping the wealthy getting the winter heating allowance. It sounds fine, but does that mean the introduction of a means test for everyone to qualify? And who sets the level?

Other benefits, such as travel passes, television licence and free medicine prescriptions – things to help pensioners maintain some quality of life – are threatened: the government is looking to see if the nation can ‘afford’ them.

The campaign of setting one section of people against another is well-prepared, with millions of words and pictures; every person working or retired is the target. Just a few figures:

  • 31% of the population are of retiring age; not all get a full pension as many qualifying conditions apply
  • The government is raising the age of retirement for women from 60 to 65 by 2018 and for both men ad women to 66 by 2020, with increases to 67 and 68 later on
  • The ‘full’ state pension is only approximately one sixth of the average age
  • The amount paid out in pensions from the total wealth produced in one year is approximately 5%, yet the percentage of the population’s pensioners is 31% (and most have contributed to a pension scheme throughout their working lives).

Just two further points: today’s working population, who now produce all the nation’s wealth, were raised, loved and cared for by our pensioners. Today’s working population and pensioners combined have massive voting power: use it!

Tony Delahoy

Silverknowes Gardens