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07/09/2010
Millions Await Tax Error Letters
Millions of taxpayers are waiting to discover if they received a letter from HM Revenue and Customs telling them that they have paid the incorrect amount of income tax.
Around 4.3 million people have paid too much through the PAYE (Pay As You Earn) and will be entitled to a rebate, worth an average of £420, but 1.4 million have underpaid and face having to repay an average of nearly £1,500.
The first 45,000 letter have been sent out informing people of the error, which has been caused by the introduction of a new computer system. The rest of the letters are expected to be sent out by Christmas.
Anyone who owes less than £2,000 will have the money owed collected through next year's tax codes. However, those who owe more than £2,000 could be asked to pay a lump sum.
Anyone who wishes to query the calculation is advised to check the information and contact HMRC if they believe it to be wrong.
Experts have said that those hit by an unexpected tax bill could use a little-known loophole known as the extra statutory concession, which allows the amount owed to be written off, if HMRC was given all the relevant information, but failed to issue a demand for the payments within 12 months of the end of the tax year in which the information was received.
However, a spokesperson for HMRC warned that this depended on the specific circumstances of each case.
(KMcA/GK)
Around 4.3 million people have paid too much through the PAYE (Pay As You Earn) and will be entitled to a rebate, worth an average of £420, but 1.4 million have underpaid and face having to repay an average of nearly £1,500.
The first 45,000 letter have been sent out informing people of the error, which has been caused by the introduction of a new computer system. The rest of the letters are expected to be sent out by Christmas.
Anyone who owes less than £2,000 will have the money owed collected through next year's tax codes. However, those who owe more than £2,000 could be asked to pay a lump sum.
Anyone who wishes to query the calculation is advised to check the information and contact HMRC if they believe it to be wrong.
Experts have said that those hit by an unexpected tax bill could use a little-known loophole known as the extra statutory concession, which allows the amount owed to be written off, if HMRC was given all the relevant information, but failed to issue a demand for the payments within 12 months of the end of the tax year in which the information was received.
However, a spokesperson for HMRC warned that this depended on the specific circumstances of each case.
(KMcA/GK)
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