Pensioners in arrears could escape extra payments

PENSIONERS facing arrears under the tax liability clampdown may escape paying extra money once they claim medical expenses and other allowances through Revenue.

The head of Revenue was accused yesterday of causing utter confusion among pensioners after admitting that many may now in fact not be liable for tax or face penalties.

Josephine Feehily’s comments come after 115,000 letters were sent to pensioners in recent weeks advising them that their tax liabilities were underpaid or underreported. Another 35,000 pensioners were warned they may be liable but also told they were overpaying tax or that amounts would be deducted and repaid later.