Pensioners to be slapped by tax withdrawal charges by HMRC in latest crackdown

TRENDING Stories Videos Your Say The organisation cautioned that offers of early or tax-efficient access to pension funds should be treated with suspicion.HMRC said: If something sounds too good to be true, it probably is.The authority explained that many avoidance schemes rely on “artificial transactions that serve no real purpose” beyond reducing tax liabilities on paper.However, it warned the consequences can be severe for those involved.HMRC also said individuals remain legally responsible for paying all tax owed, regardless of whether they relied on advice from scheme promoters.Workers may face a “double hit”, losing money paid to scheme operators before being pursued for the full tax bill.One warning sign identified by HMRC is receiving more money in a bank account than is shown on a payslip.Other indicators include payments described as loans or capital advances, unusually complex pay arrangements, and umbrella company schemes offering higher-than-expected take-home pay.LATEST DEVELOPMENTSState pension 'more modest' for millions of Britons despite £575 triple lock boostState pension age rise to cost British workers £4,000Rachel Reeves's pensions inheritance tax raids force savers to withdraw £2.3billion from retirementsHMRC highlighted several cases where workers encountered unexpected tax demands after becoming involved in such arrangements.One nurse received untaxed payments into her account before later facing a tax bill.In a separate case, a single parent joined a scheme and was subsequently issued with an unanticipated demand.HMRC said the individuals were still required to repay the full amount of tax owed.The authority said relying on third parties to manage tax affairs does not remove legal responsibility.HMRC is urging anyone who believes they may be involved in a questionable scheme to contact the organisation as soon as possible.The longer you leave it, the bigger the tax bill, the tax authority warned.Support is available for those struggling to repay what they owe, including options to spread payments through instalment plans.With umbrella companies widely used across the contracting sector, HMRC said it is essential that workers understand how their income is structured and taxed.The authority added that suspected schemes can be reported, including anonymously, as part of efforts to tackle promoters behind the arrangements. Our Standards: The GB News Editorial Charter