Technical Newsdesk: November 2025

As Senior Manager of the CIOT’s Low Incomes Tax Reform Group (LITRG), it is a privilege to work with a team that constantly strives to make a difference to the experience of unrepresented taxpayers. In the ever-changing world of tax (and with an ever-evolving HMRC), it truly feels that LITRG’s mission is as important as it has ever been.

The LITRG team has been delighted to welcome two new Technical Officers in recent months: Sarah Weston and Laura Cumins, both of whom have rolled up their sleeves and hit the ground running.

Sarah had the early challenge to lead on LITRG’s Budget Representation, setting out a powerful plea to the government to reconsider its stance on operating PAYE on the state pension. You can read our submission here: tinyurl.com/57af2kuy. LITRG has been raising this issue since the very early days of its existence; I believe our founder John Andrews was originally rattling cages on this matter at the turn of this century! Given the increasing number of state pensioners whose income now exceeds the personal allowance (and the near certainty that those receiving a full new state pension will receive more than their personal allowance from 2027-28), it felt essential that this matter be raised again.

I am sure some readers will have heard from perplexed state pensioners who are aghast at receiving a year-end ‘simple assessment’ tax demand that they were not expecting and had not budgeted for (and sometimes, do not understand). Other state pensioners may have been baffled by the PAYE tax code applied to their private pension, perhaps where they are in a ‘negative’ K-code position. Let us not forget there are ever-increasing items included within PAYE codes these days – such as taxable bank interest and, in some cases from 2026-27, winter fuel payment clawbacks. Adding the strain of a hefty state pension coding adjustment is simply no longer workable.

As such, it is our view that HMRC and state pensioners alike would benefit greatly if PAYE could be separately administered on state pension payments by the Department for Work and Pensions (DWP). There are some practical issues that would need to be carefully considered – not least, it would be a huge undertaking for DWP. Overall, though, we hope that the government will agree that the balance has been tipped well and truly in favour of this change.

Later this month, like many readers, the LITRG, CIOT and ATT technical teams will be waiting eagerly to see what this year’s Autumn Budget brings. Given that this budget is taking place so late in November, it will feel almost (dare I say it…?) festive. I may have to treat myself to a mince pie as I watch Rachel Reeves give her speech. Hopefully, this will fuel me for the immediate aftermath where we scurry into action with technical analysis and press releases! I encourage all mince-pie loving readers to do the same.

In the meantime, I hope you enjoy reading this particularly ‘Finance-Bill-heavy’ edition of Technical Newsdesk. Needless to say, the technical teams across CIOT, LITRG and ATT have been very busy looking at the draft legislation published this Summer.