Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the number of people over State Pension age who will be required to complete a Self Assessment tax return for the first time in each tax year from 2027–28 to 2030–31.

This Government is introducing the Pension Tax Allowance to reduce the administrative burden for some pensioners who would otherwise have a small amount of tax to pay.

HMRC has not estimated the number of people over State Pension Age who will be required to complete a Self-Assessment tax return for future years. Producing these estimates would require forecasting individual yearly circumstances over several tax years and then forecasting which customer channels are used.

Estimates of the impact of the Pension Tax Allowance, including on the number of pensioners who will not receive a Simple Assessment due to this measure, are available here: Reduction in Income Tax for eligible pensioners - GOV.UK

When it comes to issuing and collecting Simple Assessment, HMRC takes a proportionate approach to the reporting of small amounts of income and collection of tax on those amounts.

The Pension Tax Allowance is calculated based on your total income, regardless of the source or sources of that income. Provided your income is under or at the full value of the new State Pension or your income is within the withdrawal range, you will be eligible for the Pension Tax Allowance. This means that individuals on the same total income, with or without private pension income, are treated identically with regard to the Pension Tax Allowance.

It has always been the case that pension income, including the State Pension and private pensions, is taxable and contributes to funding vital public services. The vast majority of pensioners paid income tax under the last Conservative government. Depending on individual circumstances, tax can be collected through PAYE, Self-Assessment or Simple Assessment. If a Simple Assessment is required, HMRC will contact the individual to inform them of their liability, as has always been the case.

HMRC keeps customer demand and its telephone services under review. The department considers the impact of changes in customer demand as part of its operational planning and deploys resources flexibly across services according to customer need.