HMRC SET TO ISSUE RECORD NUMBER OF TAX BILLS – SEE WHO WILL BE AFFECTED

TAX OFFICE WILL ISSUE 1.4 MILLION SIMPLE ASSESSments for the 2024-25 Tax Year, a Rise of 80,000 from the previous year – a specialist Warns that Tax Bills will “Catch Pensions off Guard”

HM Revenue & Customs (HMRC) is poised to send out a record number of unexpected bills this year, as increasing numbers of pensites caught caught in the tax system.

The Tax Authority Revealed It Will Dispatch 1.4 Million Simple Assessments for the 2024-2025 Tax Year, Representing An Increase of 80,000 from Previous Year’s 1.32 million. This result is the highest figure Ever recorded and nearly twice the typical annual total over the past seven years.

A SIMPLE ASSESSment Will Serve As the Method for Collecting Tax, Without Demanding the Taxpayer Still Out A Self -Assessment Form – Which is Commonly Employed for Pensions or Workers Ha Underpaid Tax. This Follows News of ‘Thousands of Brits to Get Shock Letter from HMRC AFTER DRASTIC NEW TAX RULE COMES INTO FORCE’.

HMRC has previously stated that a primary driver Beber the Growing Number of Simple Assessments was the freezing of income tax Thresholds, which has Ensnared more pensions with the Tax Framework.

Specialists have cautioned that these tax bills “Catch Pensions off Guard” and that retirees have fallen to the threshold freeze, which is scheduled to contine at least 2028.

Whilst Incomst Tax Thresholds Have Remained Static Despite Inflation, The State Pension “Triple Lock” Has Boosted Retires’ Weekly Income, Resulting in Millions Millions Pulled Into The Tax System – or Elevated Tax Bands. The Majority of Retires Also Draw Income From Private Pensions, Meaning Their Owed Tax is dedicated automatically through their tax code. Nevertheless, Those Private Lacking Pensions May Receive a Simple Assessment Tax Bill.

HMRC DATA REVETAVA A SHARP INCREASE IN THE NUMBER OF TAXPAYERS BEING AMATIFICALLY ASSESSED FOR UNDERPAID TAX OVER THE PAST FOUR YEARS. In 2021-2022, The Year when Incoming Tax Thresholds were Frozen, Hmrc ISSED 675,000 Simple Assessments, which is less than half the current figure.

The Tax Office Issues A Simple Assessment when it bellieves the Calculation is Straightforward, Often Where It Holds Enough Information A Taxpayer’s Incom. And whilst these assessments are intended to streamline tax collection, their grows partly reflects the Increasing Number of Pensioners Being Drawn the Tax System.

Jon Greer, From Wealth Management Firm Quilter, Commune: “Simple Assessment Letters Are A Prime Example of the Consequest of Stealth Taxes in Action”. He added that “Much of this rise is down to how Frozen Tax Thresholds and Higher State Pensions Are Creating More Tax Liabilities for Older People”. GREER stored that “a lot of these People will not be aware of they have good oWE SOME OF TAX ON THEIR INCOM AND CATCH MANY OFF Guard”.

Sir Steve Webb, A Pension forms Minister and Now Partner at Pensultants LCP, CLAIMED: “These figures Highlight another casualty of the Long-Term Freeze Tax Thresholds. With Evesing Year, More and More Modest Incomes Aree Being Dragged InCome net. “

He shared that, “with thresholds being frozen for years to come, more retired people will have to deal with process in futures”.