MoneyHMRCHMRC has admitted to a 15-year state pension error11:39, 08 Jul 2026HMRC has confessed to overtaxing 1.4 million pensioners following a 15-year blunder. The government's tax authority revealed the mistake originated from a 2010 system overhaul and issued an apology to those affected.‌The error emerged following an investigation by Telegraph Money, leading HMRC chief executive John-Paul Marks to express regret in correspondence to MPs. In his letter to parliamentarians, Mr Marks acknowledged the fault, which has resulted in pensioners being overcharged since 2010-11. Mr Marks said that approximately 1.4 million pensioners in PAYE were overtaxed in 2024-25 due to the problem. This represented an increase from 1.17 million in 2023-24 and 762,000 in 2022-23.‌Additionally, as many as 955,000 pensioners in self assessment and 760,000 in simple assessment may have been overcharged in 2024-25 because incorrect state pension figures were used in HMRC's calculations, reports Birmingham Live.‌Mike Warburton, The Telegraph's tax columnist, who exposed the issue in May, said: "There seems to be a state of chaos in HMRC over this issue and it is pensioners who are being left confused and overtaxed."‌Jon Greer, from investment firm Quilter, observed: "While the amounts involved appear relatively small at an individual level, the fact it has affected so many people means it may have unfairly topped up government coffers."He continued: "While HMRC says it is working on a solution to prevent the issue from happening again, it falls short of saying it will repay those affected automatically, because it falls within their administrative tolerances. Pensioners who believe they may have overpaid will need to take matters into their own hands and contact HMRC directly."Article continues belowMr Marks revealed the problem had cost basic rate taxpayers receiving the full basic state pension £1.76 annually on average between 2021-22 and 2024-25, and £2.30 for those on the full new state pension.He said: "I apologise for this error and especially to those pensioners who have been affected. I know that any shortfall matters, particularly to customers on fixed or limited incomes. I would like to reassure the committee that HMRC is taking this issue very seriously and we are working at pace to put in place a solution."An HMRC spokesman said: "We're confident most state pensioners won't be affected, and for those that are, the impact is small, with the difference in annual tax paid only a few pounds in most cases."Choose Daily Mirror as a 'Preferred Source' on Google News for quick access to the news you value.‌HMRCPensionsTaxState pension