15.6.2000

Davey wins Commons tax victory for pensioners

In the Commons last Friday (9^th June) Lib Dem Treasury Select Committee Member Edward Davey MP, won some important concessions from the Treasury over the way the taxman treats pensioners.

In a debate Mr.Davey was granted by the Speaker entitled "Low income pensioners and the administrative practices of the Inland Revenue", Kingston and Surbiton’s MP told the Commons of the special difficulties pensioners face when dealing with the Inland Revenue. (see the text of his speech for details - copy of debate attached.)

In the debate, Mr.Davey called for:

• The establishment of a Pensioner Unit in the Inland Revenue, to focus on the myriad of problems faced by the elderly taxpayer

• Government support for a new scheme to provide trained volunteers to help pensioners complete tax forms, like schemes already operating in the USA and Canada

• A reduction in the number of forms sent to the elderly by the Inland Revenue through three no-cost administrative changes

Replying to the debate, the Paymaster General, Dawn Primarolo promised to:

• Take forward Mr.Davey’s idea for a publicly supported national tax volunteer scheme

• Look at Mr.Davey’s proposal for a Pensioner Unit, with a top Inland Revenue official

• Address the problems Mr.Davey drew attention with respect to tax codings for pensioners and the administration of tax on annuities

Mr Davey commented:

"The Paymaster General promised to look carefully at all my proposals for helping pensioners. She was particularly positive about my ideas for reducing the unnecessary forms the Revenue send the elderly. This is a good start for the campaign for low income elderly taxpayers, but I will continue to push for more radical change."