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The Low Incomes Tax Reform Group have again successfully championed the cause of pensioners across the UK, helping to win a significant concession from HM Revenue & Customs.

Yesterday, the Exchequer Secretary, David Gauke MP, announced that HMRC would write off tax owed by 250,000 pensioners for the 2008/09 and 2009/10 tax years. The underpayments have arisen because HMRC failed to tax these pensioners' state pensions correctly at the time; LITRG has successfully argued that these cases would be eligible for 'write-off' if the pensioners applied under the concession ESC A19, so HMRC has written the tax off without pursuing the taxpayers first.

LITRG tried to get HMRC to agree to write off similar debts which had arisen in earlier tax years - but which had only now come to light thanks to the department's now-infamous new PAYE IT system - but HMRC has so far refused to budge. Nevertheless, LITRG has pointed out that pensioners can still apply for the concession individually, if they want to - and it will be harder for HMRC to say 'No' now that they've granted it en masse in later tax years, in similar circumstances.

However, it's not all good news: HMRC has identified another 450,000 non-pensioner taxpayers who owe tax for 2007/08 and it will be writing to them over the next few months to ask for payment.

The A19 concession will probably see more takers in the coming months.