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Under the new system announced in 2014, pensioners receive £168.90 a week but the data from the Department for Work and Pensions was presented in rounded figures.

5 Pay the piper 

A woman was told to pay a tax surcharge because she didn't seek advice and therefore her actions were not deemed reasonable.

A First Tier Tribunal confirmed the £4,000 unauthorised payment surcharge imposed on the woman who had entered into a pension scam using her self invested personal pension.

Ms Franklin, who was 44 at the time, had entered into a pension backed loan scheme in 2011 which involved transferring her existing pension into a Sipp.

But payments that are made out of a pension which do not meet certain conditions, for example if a person were to access pension funds before the age of 55, will be subject to an unauthorised payment charge of 40 per cent and a surcharge of 15 per cent of the funds.

HMRC argued that the loan to Ms Franklin was an unauthorised payment as it used funds from her Sipp, and imposed a 40 per cent charge of £10,736 on the £26,842 loans and a 15 per cent unauthorised payment surcharge of £4,026.

Originally, Ms Franklin disputed both charges but later agreed to pay the £10,736 but further contested the surcharge cost.

imogen.tew@ft.com

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