Recent reports suggest that thousands of taxpayers may have been affected by an issue involving the State Pension figures held by HMRC.
For those who complete a Self-Assessment tax return, this serves as an important reminder not to rely solely on information pre-populated by HMRC.
For individuals across Oxford and Oxfordshire, taking a few minutes to verify the information included on a tax return could help avoid unnecessary tax adjustments and correspondence later.
At The MGroup, we regularly help clients review their tax returns and identify discrepancies before they become problems.
Why does the issue matter?
The State Pension is taxable income, even though tax is not normally deducted before payments are made.
As a result, the correct amount must be included on a Self Assessment tax return where one is required. If the wrong figure is used, it could lead to:
- Too much tax being paid
- An unexpected tax bill
- Amendments being required after submission
- Delays in finalising tax affairs
For this reason, it is important to check any figures used rather than assuming they are correct.
Partner Insight
“HMRC’s digital systems have improved significantly, but taxpayers should still review pre-populated information carefully before submitting a return.” says Darren Greene Partner at The MGroup.
Who could be affected?
The issue is particularly relevant for people who:
- Started receiving their State Pension during the tax year
- Experienced a change in entitlement
- Receive multiple sources of income
- Rely on information automatically populated by HMRC
While not everyone will be affected, reviewing the figures now could save time and inconvenience later.
Further information on State Pension taxation can be found via GOV.UK:
Check the figures against your own records
Before submitting a return, compare the State Pension figure shown against your own documentation.
Useful records include:
- State Pension statements
- Department for Work and Pensions correspondence
- Bank statements showing pension receipts
- Previous tax records
A simple check may help identify discrepancies before they result in additional work.
Partner Insight
“Correcting a tax return after submission is usually more time consuming than identifying an issue beforehand. Early review often prevents unnecessary complications.” says Ollie Squire, Partner at The MGroup.
Don’t rely entirely on digital information
HMRC continues to develop its digital services and increasingly pre-populates tax returns using information already held.
While these developments are welcome, no system is perfect.
The responsibility for ensuring a tax return is complete and accurate always rests with the taxpayer.
Related reading 👉 https://www.themgroup.co.uk/hmrc-digital-future-taking-shape/
Why preparing early helps
Many taxpayers still leave their Self-Assessment return until close to the January deadline.
However, preparing early can provide several advantages:
✅ More time to identify missing information
✅ Opportunity to resolve discrepancies
✅ Earlier certainty over tax liabilities
✅ Better cash flow planning
✅ Reduced last-minute stress
👉 You may also find this article useful:
https://www.themgroup.co.uk/funding-self-assessment-tax-payments/
What should you do now?
If you receive the State Pension and complete a tax return, consider:
✅ Checking HMRC’s figures against your own records
✅ Reviewing any recent changes to pension entitlement
✅ Gathering relevant documentation early
✅ Preparing your tax return well before the deadline
✅ Seeking advice if anything appears incorrect
Key Takeaways
- HMRC has identified an issue affecting some State Pension figures.
- Incorrect figures could lead to underpayments or overpayments of tax.
- Taxpayers should verify information using their own records.
- Early preparation makes errors easier to spot.
- Professional review can provide additional reassurance.
How We Can Help
Checking your tax return before submission can help identify errors and ensure you pay the correct amount of tax.
At The MGroup, we help individuals review tax returns, resolve discrepancies and plan ahead with confidence.
A trusted, expert and supportive approach can help ensure your tax affairs remain accurate and up to date.
If you would like your tax return reviewed or have concerns about your State Pension figures, we are always happy to help.