HMRC admits overtaxing 1,400,000 people – what to do if you’re affected

The chief executive of HMRC has apologised for the error (Picture: Shutterstock/Ascannio)

HMRC has admitted to overtaxing roughly 1.4 million pensioners last year after an error in the way it calculated state pension tax.

The mistake, which dates back more than a decade, has led to retirees being overcharged since 2010-11.

In 2024-25 alone, the tax office collected more than £2 million in excess tax from pensioners.

In a letter to the Chair of the Public Accounts Committee, HMRC’s chief executive, John-Paul Marks, apologised for the error.

He said: ‘I apologise for this error and especially to those pensioners who have been affected. I know that any shortfall matters, particularly to customers on fixed or limited incomes.

‘I would like to reassure the Committee that HMRC is taking this issue very seriously and we are working at pace to put in place a solution.’