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HMRC Admits Tax Errors


The National Audit Office in their report of July this year into HM Revenue and Customs has highlighted errors in the PAYE system. It estimated that 4.5 million individuals have overpaid in total some 1.6 billion of tax and a further 1.5 million individuals have underpaid in total some 400 million of tax for 2008-09 and 2009-10 tax years.


Latest estimates by HMRC say that the average underpayment is 1,400, some may be as much as 5,000. Over the next few months, the individuals identified as under payers will be sent a notification do not panic, this is not a demand for payment. Any error will be collected via an amended tax code next tax year, 2011-12. If you do nothing this money will be taken from your pay automatically. The repayment will reduce your monthly net pay by over 100 per month if you owe the average amount. It could be over 400 per month, at the higher end.


Most errors will occur where people have changed jobs, have multiple jobs, or have retired, possibly with a part-time job. If you fall into one of these categories you are more likely to have a mistake in your tax code.


On the flip side, some people have overpaid by an average 400. They will receive a refund by cheque. But either way, can you be sure that HMRC has got it right now? Call or email us and we can investigate your case.


There may be errors going back further than 2008. There is a 6-year time limit on claims you can make. That means anything before 2004 is now closed. It is therefore imperative that you take action now. If you do not feel confident enough to tackle HMRC yourself, contact us now and see if we can help.


SCAM WARNING - HMRC will NOT contact you by email; so do not fall for the email scams that announce tax refunds due.



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