Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HM Revenue and Customs plans to take to inform pensioners who have not previously paid income tax that they may become liable to pay it.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
This Government is introducing the Pension Tax Allowance to reduce the administrative burden for some pensioners who would otherwise have a small amount of tax to pay.
HMRC has not estimated the number of people over State Pension Age who will be required to complete a Self-Assessment tax return for future years. Producing these estimates would require forecasting individual yearly circumstances over several tax years and then forecasting which customer channels are used.
Estimates of the impact of the Pension Tax Allowance, including on the number of pensioners who will not receive a Simple Assessment due to this measure, are available here: Reduction in Income Tax for eligible pensioners - GOV.UK
When it comes to issuing and collecting Simple Assessment, HMRC takes a proportionate approach to the reporting of small amounts of income and collection of tax on those amounts.
The Pension Tax Allowance is calculated based on your total income, regardless of the source or sources of that income. Provided your income is under or at the full value of the new State Pension or your income is within the withdrawal range, you will be eligible for the Pension Tax Allowance. This means that individuals on the same total income, with or without private pension income, are treated identically with regard to the Pension Tax Allowance.
It has always been the case that pension income, including the State Pension and private pensions, is taxable and contributes to funding vital public services. The vast majority of pensioners paid income tax under the last Conservative government. Depending on individual circumstances, tax can be collected through PAYE, Self-Assessment or Simple Assessment. If a Simple Assessment is required, HMRC will contact the individual to inform them of their liability, as has always been the case.
HMRC keeps customer demand and its telephone services under review. The department considers the impact of changes in customer demand as part of its operational planning and deploys resources flexibly across services according to customer need.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of an increase in the number of pensioners receiving Simple Assessments on HM Revenue and Customs’ telephone services.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
This Government is introducing the Pension Tax Allowance to reduce the administrative burden for some pensioners who would otherwise have a small amount of tax to pay.
HMRC has not estimated the number of people over State Pension Age who will be required to complete a Self-Assessment tax return for future years. Producing these estimates would require forecasting individual yearly circumstances over several tax years and then forecasting which customer channels are used.
Estimates of the impact of the Pension Tax Allowance, including on the number of pensioners who will not receive a Simple Assessment due to this measure, are available here: Reduction in Income Tax for eligible pensioners - GOV.UK
When it comes to issuing and collecting Simple Assessment, HMRC takes a proportionate approach to the reporting of small amounts of income and collection of tax on those amounts.
The Pension Tax Allowance is calculated based on your total income, regardless of the source or sources of that income. Provided your income is under or at the full value of the new State Pension or your income is within the withdrawal range, you will be eligible for the Pension Tax Allowance. This means that individuals on the same total income, with or without private pension income, are treated identically with regard to the Pension Tax Allowance.
It has always been the case that pension income, including the State Pension and private pensions, is taxable and contributes to funding vital public services. The vast majority of pensioners paid income tax under the last Conservative government. Depending on individual circumstances, tax can be collected through PAYE, Self-Assessment or Simple Assessment. If a Simple Assessment is required, HMRC will contact the individual to inform them of their liability, as has always been the case.
HMRC keeps customer demand and its telephone services under review. The department considers the impact of changes in customer demand as part of its operational planning and deploys resources flexibly across services according to customer need.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people over State Pension age who will receive a Simple Assessment for an income tax liability of (a) less than £50, (b) £50 to £100, and (c) £100 to £200 in each tax year from 2027–28 to 2030–31.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
This Government is introducing the Pension Tax Allowance to reduce the administrative burden for some pensioners who would otherwise have a small amount of tax to pay.
HMRC has not estimated the number of people over State Pension Age who will be required to complete a Self-Assessment tax return for future years. Producing these estimates would require forecasting individual yearly circumstances over several tax years and then forecasting which customer channels are used.
Estimates of the impact of the Pension Tax Allowance, including on the number of pensioners who will not receive a Simple Assessment due to this measure, are available here: Reduction in Income Tax for eligible pensioners - GOV.UK
When it comes to issuing and collecting Simple Assessment, HMRC takes a proportionate approach to the reporting of small amounts of income and collection of tax on those amounts.
The Pension Tax Allowance is calculated based on your total income, regardless of the source or sources of that income. Provided your income is under or at the full value of the new State Pension or your income is within the withdrawal range, you will be eligible for the Pension Tax Allowance. This means that individuals on the same total income, with or without private pension income, are treated identically with regard to the Pension Tax Allowance.
It has always been the case that pension income, including the State Pension and private pensions, is taxable and contributes to funding vital public services. The vast majority of pensioners paid income tax under the last Conservative government. Depending on individual circumstances, tax can be collected through PAYE, Self-Assessment or Simple Assessment. If a Simple Assessment is required, HMRC will contact the individual to inform them of their liability, as has always been the case.
HMRC keeps customer demand and its telephone services under review. The department considers the impact of changes in customer demand as part of its operational planning and deploys resources flexibly across services according to customer need.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment he has made of the income of pensioners (a) with a small amount of taxable private pension income and (b) whose only income is the State Pension following the introduction of the proposed State Pension tax protection.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
This Government is introducing the Pension Tax Allowance to reduce the administrative burden for some pensioners who would otherwise have a small amount of tax to pay.
HMRC has not estimated the number of people over State Pension Age who will be required to complete a Self-Assessment tax return for future years. Producing these estimates would require forecasting individual yearly circumstances over several tax years and then forecasting which customer channels are used.
Estimates of the impact of the Pension Tax Allowance, including on the number of pensioners who will not receive a Simple Assessment due to this measure, are available here: Reduction in Income Tax for eligible pensioners - GOV.UK
When it comes to issuing and collecting Simple Assessment, HMRC takes a proportionate approach to the reporting of small amounts of income and collection of tax on those amounts.
The Pension Tax Allowance is calculated based on your total income, regardless of the source or sources of that income. Provided your income is under or at the full value of the new State Pension or your income is within the withdrawal range, you will be eligible for the Pension Tax Allowance. This means that individuals on the same total income, with or without private pension income, are treated identically with regard to the Pension Tax Allowance.
It has always been the case that pension income, including the State Pension and private pensions, is taxable and contributes to funding vital public services. The vast majority of pensioners paid income tax under the last Conservative government. Depending on individual circumstances, tax can be collected through PAYE, Self-Assessment or Simple Assessment. If a Simple Assessment is required, HMRC will contact the individual to inform them of their liability, as has always been the case.
HMRC keeps customer demand and its telephone services under review. The department considers the impact of changes in customer demand as part of its operational planning and deploys resources flexibly across services according to customer need.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the average cost to HM Revenue and Customs of issuing and collecting a Simple Assessment from a person over State Pension age.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
This Government is introducing the Pension Tax Allowance to reduce the administrative burden for some pensioners who would otherwise have a small amount of tax to pay.
HMRC has not estimated the number of people over State Pension Age who will be required to complete a Self-Assessment tax return for future years. Producing these estimates would require forecasting individual yearly circumstances over several tax years and then forecasting which customer channels are used.
Estimates of the impact of the Pension Tax Allowance, including on the number of pensioners who will not receive a Simple Assessment due to this measure, are available here: Reduction in Income Tax for eligible pensioners - GOV.UK
When it comes to issuing and collecting Simple Assessment, HMRC takes a proportionate approach to the reporting of small amounts of income and collection of tax on those amounts.
The Pension Tax Allowance is calculated based on your total income, regardless of the source or sources of that income. Provided your income is under or at the full value of the new State Pension or your income is within the withdrawal range, you will be eligible for the Pension Tax Allowance. This means that individuals on the same total income, with or without private pension income, are treated identically with regard to the Pension Tax Allowance.
It has always been the case that pension income, including the State Pension and private pensions, is taxable and contributes to funding vital public services. The vast majority of pensioners paid income tax under the last Conservative government. Depending on individual circumstances, tax can be collected through PAYE, Self-Assessment or Simple Assessment. If a Simple Assessment is required, HMRC will contact the individual to inform them of their liability, as has always been the case.
HMRC keeps customer demand and its telephone services under review. The department considers the impact of changes in customer demand as part of its operational planning and deploys resources flexibly across services according to customer need.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what cost-benefit analysis he has undertaken of collecting small income tax liabilities from pensioners through Simple Assessment.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
This Government is introducing the Pension Tax Allowance to reduce the administrative burden for some pensioners who would otherwise have a small amount of tax to pay.
HMRC has not estimated the number of people over State Pension Age who will be required to complete a Self-Assessment tax return for future years. Producing these estimates would require forecasting individual yearly circumstances over several tax years and then forecasting which customer channels are used.
Estimates of the impact of the Pension Tax Allowance, including on the number of pensioners who will not receive a Simple Assessment due to this measure, are available here: Reduction in Income Tax for eligible pensioners - GOV.UK
When it comes to issuing and collecting Simple Assessment, HMRC takes a proportionate approach to the reporting of small amounts of income and collection of tax on those amounts.
The Pension Tax Allowance is calculated based on your total income, regardless of the source or sources of that income. Provided your income is under or at the full value of the new State Pension or your income is within the withdrawal range, you will be eligible for the Pension Tax Allowance. This means that individuals on the same total income, with or without private pension income, are treated identically with regard to the Pension Tax Allowance.
It has always been the case that pension income, including the State Pension and private pensions, is taxable and contributes to funding vital public services. The vast majority of pensioners paid income tax under the last Conservative government. Depending on individual circumstances, tax can be collected through PAYE, Self-Assessment or Simple Assessment. If a Simple Assessment is required, HMRC will contact the individual to inform them of their liability, as has always been the case.
HMRC keeps customer demand and its telephone services under review. The department considers the impact of changes in customer demand as part of its operational planning and deploys resources flexibly across services according to customer need.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people over State Pension age who will receive a Simple Assessment for income tax in each tax year from 2027–28 to 2030–31; and how many of those people have not previously received a Simple Assessment.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
This Government is introducing the Pension Tax Allowance to reduce the administrative burden for some pensioners who would otherwise have a small amount of tax to pay.
HMRC has not estimated the number of people over State Pension Age who will be required to complete a Self-Assessment tax return for future years. Producing these estimates would require forecasting individual yearly circumstances over several tax years and then forecasting which customer channels are used.
Estimates of the impact of the Pension Tax Allowance, including on the number of pensioners who will not receive a Simple Assessment due to this measure, are available here: Reduction in Income Tax for eligible pensioners - GOV.UK
When it comes to issuing and collecting Simple Assessment, HMRC takes a proportionate approach to the reporting of small amounts of income and collection of tax on those amounts.
The Pension Tax Allowance is calculated based on your total income, regardless of the source or sources of that income. Provided your income is under or at the full value of the new State Pension or your income is within the withdrawal range, you will be eligible for the Pension Tax Allowance. This means that individuals on the same total income, with or without private pension income, are treated identically with regard to the Pension Tax Allowance.
It has always been the case that pension income, including the State Pension and private pensions, is taxable and contributes to funding vital public services. The vast majority of pensioners paid income tax under the last Conservative government. Depending on individual circumstances, tax can be collected through PAYE, Self-Assessment or Simple Assessment. If a Simple Assessment is required, HMRC will contact the individual to inform them of their liability, as has always been the case.
HMRC keeps customer demand and its telephone services under review. The department considers the impact of changes in customer demand as part of its operational planning and deploys resources flexibly across services according to customer need.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people over State Pension age who will be required to complete a Self Assessment tax return for the first time in each tax year from 2027–28 to 2030–31.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
This Government is introducing the Pension Tax Allowance to reduce the administrative burden for some pensioners who would otherwise have a small amount of tax to pay.
HMRC has not estimated the number of people over State Pension Age who will be required to complete a Self-Assessment tax return for future years. Producing these estimates would require forecasting individual yearly circumstances over several tax years and then forecasting which customer channels are used.
Estimates of the impact of the Pension Tax Allowance, including on the number of pensioners who will not receive a Simple Assessment due to this measure, are available here: Reduction in Income Tax for eligible pensioners - GOV.UK
When it comes to issuing and collecting Simple Assessment, HMRC takes a proportionate approach to the reporting of small amounts of income and collection of tax on those amounts.
The Pension Tax Allowance is calculated based on your total income, regardless of the source or sources of that income. Provided your income is under or at the full value of the new State Pension or your income is within the withdrawal range, you will be eligible for the Pension Tax Allowance. This means that individuals on the same total income, with or without private pension income, are treated identically with regard to the Pension Tax Allowance.
It has always been the case that pension income, including the State Pension and private pensions, is taxable and contributes to funding vital public services. The vast majority of pensioners paid income tax under the last Conservative government. Depending on individual circumstances, tax can be collected through PAYE, Self-Assessment or Simple Assessment. If a Simple Assessment is required, HMRC will contact the individual to inform them of their liability, as has always been the case.
HMRC keeps customer demand and its telephone services under review. The department considers the impact of changes in customer demand as part of its operational planning and deploys resources flexibly across services according to customer need.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people over State Pension age who will become liable for income tax for the first time in each tax year from 2027–28 to 2030–31.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Estimates of the projected number of income taxpayers, including the number taken out of income tax by the Pension Tax Allowance, are available within the OBR’s October 2026 Economic and fiscal outlook – detailed forecast tables: receipts, linked below:
OBR’s October 2026 Economic and fiscal outlook (table 4.18)
This Government is introducing the Pension Tax Allowance to reduce the administrative burden for some pensioners who would otherwise have a small amount of tax to pay. Most pensioners already pay tax on their income, including their State Pension where applicable. These figures capture those who are taken out of income tax as a result of the Pension Tax Allowance across this parliament.
Asked by: Peter Bedford (Conservative - Mid Leicestershire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people over State Pension age received penalties for late submission of a Self Assessment tax return in the most recent tax year for which figures are available; and what steps HM Revenue and Customs takes to help pensioners understand their obligations before penalties are applied.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
93,000 people over the state pension age received a penalty for late submission of a Self Assessment tax return in the 2024-25, the most recent tax year for which figures are available. HMRC issue SA returns to customers where the information suggests that they meet the published criteria to complete one. HMRC encourage customers to contact us if they believe they do not need to file a return and do offer tailored support through our Extra Support Teams if for example the customer has difficulty in contacting HMRC or has a health condition, find further information here: https://www.gov.uk/get-help-hmrc-extra-support. Where they do so, HMRC will review the position and, if in agreement and if the customer has not yet filed their return, HMRC will withdraw the notice to file and cancel any related late filing penalties. Details of what actions customers need to take is set out in reminder letters and messages every year.