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Taxation of pensioners comes under the OTS spotlight

Taxation of pensioners comes under the OTS spotlight

Accountants may be interested to learn that the OTS has identified several areas regarding the taxation of pensioners that need to be addressed urgently and it hopes to provide the Chancellor with its final recommendations before next year’s Budget.

Among the areas flagged for attention are the age related and married couples allowances, the taxation of savings and the admin processes pensioners have to contend with.

The OTS is investigating the way in which the tax system affects pensioners and identifying ways to simplify it. It has already reported its finding to George Osborne and will now look at ways of simplifying the system before making its final recommendations.

John Whiting, the tax director at the OTS, said that far too many people think the tax system gets more complicated the older they get. The OTS has taken the time to fully document the current system and take into account the concerns of pensioners before making any solid recommendations for change.

The OTS has now identified some ways to alleviate the problems facing pensioners and hopes that its final recommendations will help older people understand the tax system and find it easier to deal with their responsibilities.

During the compilation of its report, the OTS held meetings and roadshows around the UK and sought input from pensioners, representative bodies and tax advisers.

Robin Williamson, the technical director at the Low Incomes Tax Reform Group, said he thought the OTS had done a comprehensive job identifying and explaining the problems pensioners have with the current tax system and the LITRG is happy to have contributed to the review process.

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Image: Distorted by laogooli

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