PAYE error affects almost 6 million taxpayers
HMRC ’s post-bag will be brimming up to Christmas, as they contact around 5.7 million taxpayers who have under or overpaid PAYE.
This latest round of errors dates back to April 2008, and was reportedly identified by a new computer system which uncovered discrepancies in the PAYE system totalling £2bn. Circa 4.3 million people have overpaid and are due a rebate, whilst 1.4 million have underpaid and will be required to hand back an average of £1,428 each. Those most likely to be affected are individuals who have changed jobs, gained additional income streams, received new employee benefits such as a company car or have retired.
Where individuals have informed HMRC of changes in their circumstances (which impacts their tax code) and HMRC has failed to use that information within 12 months of the end of the tax year in which it was received, then taxpayers, in accordance with the Revenue’s rules, are entitled to ask for any additional tax to be waived through an “extra statutory concession” or ESC A19.