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🇬🇧 United Kingdom /Economy & Trade

The £70 refund letter that isn't a scam

From BBC News · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

Explainer Named sources New plan
  • HM Revenue and Customs will contact about one million people, mostly women, who missed pension tax relief because of how their workplace schemes were administered.
  • Eligible recipients will typically receive about £70 for the 2024-25 tax year, with amounts varying by individual circumstances.
  • HMRC says it will contact recipients by letter or through their personal tax accounts, not by text, email or phone, and warns against requests for money, PINs or passwords.

About one million people, mostly women, are expected to receive letters from HM Revenue and Customs explaining that they may be owed a pension top-up. The letter is genuine, not a scam.

The payments target low earners who received less tax relief because their employers used Net Pay Arrangement pension schemes rather than Relief at Source schemes. Workers do not choose which arrangement their employer uses, so the government decided to compensate those who missed out.

Eligible people typically earned close to, but no more than, £12,570 a year, the starting point for income tax. They will initially receive payments for the 2024-25 tax year, with automated payments planned for later years. The typical amount will be £70, although it will vary depending on individual circumstances.

We know some people may be cautious about unexpected contact, which is why we provide clear information about what to expect and how to verify the contact is genuine.

· HMRC spokesmanHMRC explained why its communications include instructions for verifying the payment letters.

Recipients do not need to apply. HMRC will contact eligible people by letter or through their online personal tax account. It will not send a text, email or make a phone call about the payment. HMRC will also never ask recipients to transfer money or provide PIN codes or passwords.

People can check whether a letter is genuine by confirming that HMRC has their latest address and searching Gov.uk for its guidance on authenticating letters about the Low Earner’s Pension Payment. Recipients will provide bank details through their personal tax account. Those who cannot use digital services will be able to phone HMRC instead.

A HMRC spokesman said, “We know some people may be cautious about unexpected contact, which is why we provide clear information about what to expect and how to verify the contact is genuine.” Former pensions minister Sir Steve Webb said he was shocked by how few people the government expects to receive the payment, though the supplied report ends before giving that estimate.

Customers can check a letter is genuine on Gov.uk and should only respond via official HMRC channels.

· HMRC spokesmanThe spokesman advised recipients to use official channels when responding.
About this summary

Originally published by BBC News. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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