Following the death of her husband in March, a woman reported experiencing issues with HM Revenue and Customs (HMRC). After notifying HMRC through the “Tell Us Once” system, she received two letters three days apart in April regarding her tax code for the 2025-26 fiscal year. She noted that while the first letter resembled previous ones, the second letter—triggered by her husband’s passing—contained significant changes that she did not initially recognize.
Upon reviewing her bank statements later in May and June, she discovered that her occupational pension had nearly halved. HMRC had recalculated her income after her husband’s death, attributing an additional £62,000 to her pension earnings. This recalculation, which was computer-generated, placed her income into a higher tax bracket without her knowledge or consent.
During a phone call to HMRC, she learned that the recalculation was based on electronic transfers in and out of her bank accounts during February and March, multiplied to estimate an annual income exceeding £100,000. The initial communication did not provide an explanation for this recalculation, leaving her frustrated. She expressed concerns regarding privacy and the accuracy of HMRC’s conclusions, questioning the lack of personal oversight in a system that appeared to impose significant tax burdens following a critical life event.
Additionally, a separate account from another individual highlighted similar frustrations with increased insurance premiums following the death of a spouse. This individual resolved the issue by adding an unrelated family member to their policy, prompting questions about the logic behind such automated systems and their impact on individuals navigating personal loss.
Source: https://www.theguardian.com/money/2025/nov/21/how-hmrc-and-insurance-firms-make-bereavement-even-harder