State pension extra bill alert as claimants urged to check details

HMRC says tax codes determine allowances and can affect how state pension is taxed, and they can be viewed and updated via the HMRC app or online account. Finance experts warn that claimants who receive taxable benefits may risk paying the wrong amount of tax.

State pension claimants are being urged to check their tax codes after officials highlighted that errors can lead to extra tax bills. HMRC said everyone is responsible for ensuring their tax code is correct and that codes can be managed via its app or online tax account. Finance commentator Grace Hardy noted that recipients of taxable benefits can be at risk of paying the wrong amount of tax. The discussion follows because tax codes determine allowances and how much income tax is taken. Key facts: - An HMRC spokesperson said individuals are responsible for ensuring their own tax code is correct and that codes can be managed and updated via the HMRC app or an online tax account. - Tax codes determine what allowances people receive and how much income tax is paid on their income. - Grace Hardy, CEO of Hardy Accounting, said those receiving taxable benefits such as the state pension, Employment and Support Allowance (ESA) or Carer's Allowance are at risk of being taxed incorrectly. - HMRC may change a taxpayer’s code to collect tax on a state pension from wages or private pensions if total income is above the personal allowance. - The Government website includes a tool to explain tax codes, and the article reports that claimants can contact HMRC or ask an accountant to resolve any discovered errors. Summary: Officials say incorrect tax codes can lead to unexpected tax bills for state pension recipients and other benefit claimants. HMRC says codes can be viewed and updated through its app or online account and the Government provides a tool to explain codes. If a tax issue is uncovered, the article reports that claimants can contact HMRC or an accountant to seek resolution.