State pension issue
HMRC has written to Parliament’s Public Accounts Committee to inform it that an incorrect state pension figure was used in pay as you earn end-of-year reconciliations, feeding through into self assessment pre-population information and simple assessment calculations.
Although the issue affects a large number of taxpayers, the amount of tax at stake for each taxpayer appears to be relatively small (estimated at £1.76 per tax year for a basic rate taxpayer in receipt of the full basic state pension).
In the letter, HMRC apologises for the error and says that it is “working at pace to put in place a solution”.
Carbon border adjustment mechanism
HMRC has published a force of law notice for the carbon border adjustment mechanism (CBAM). The notice explains which direct emissions and production processes are relevant for CBAM goods. HMRC says that installations and verifiers can use the notice if they choose to monitor and verify actual emissions from the production of CBAM goods.
Further information
Student loans
Regulations have been made that impose a cap of 6% on interest rates on plan 2 and plan 3 student loans for the 2026/27 academic year. The measure was first announced in April 2026.
Separately, Parliament’s Treasury Committee has published its report into the student loans system. One of the recommendations made in the report is for the government to reconsider its decision, announced at the Autumn Budget 2024, to freeze the plan 2 repayment threshold at its 2026/27 level for three years from April 2027.
Further information
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