These letters are vital. They go out from Veterans UK to all those who potentially face an annual allowance tax charge.
They are a key part of many of our tax returns. Last year the issue of the letters did not go well at all. We in the Society pointed out that the initial letters contained errors and they were withdrawn.
This year, as a direct result of the late announcement of the 2018 Armed Forces pay rise and its subsequent effect on pensions, the letters have still not been issued and there is a rush to get them out in time for the tax deadline of 31 January. We are watching this issue very carefully, because if they do not arrive in time for personnel to complete their 31 Jan 19 tax returns – which seems a distinct possibility, then HMRC could fine those involved.
This outcome is of course completely unacceptable; the Ministry of Defence is working very hard to ensure this this does not happen and quite right too. Monitoring this is probably the Society’s biggest priority in the weeks ahead. Meanwhile of course, this has had a knock on effect on us and an increase in the numbers asking for forecasts. We are not complaining, but it might take us slightly longer to respond as a result.