New strategy to fight PAYE backlog
The Inland Revenue has adopted a new strategy for dealing with its massive backlog of open pay-as-you-earn cases.
The Inland Revenue has adopted a new strategy for dealing with its massive backlog of open pay-as-you-earn cases.
Instead of dealing with cases on a year-by-year basis, the Revenue will now look at the entire case history for an individual, which may span a number of years, according to a report in today’s Daily Telegraph.
The Revenue said it hoped to clear 98% of its 8.5 million cases using this method and the 1,250 additional staff employed for this task. News that the Revenue was to recruit more than 1,000 new staff was revealed by Accountancy Age last month.
Letters are to be sent out to some individuals requesting tax information dating back six years or more. But such individuals will not be fined if they do not have P45 forms for these years.
The scheme was criticised by Chas Roy-Chowdhury of the ACCA who told the Daily Telegraph that there needed to be some kind of ‘policy’ for dealing with people ‘landed with a liability that they do no know about’.
He said the initiative was a mistake on the Revenue’s part because the individuals involved were those least aware of the tax system as they did not fill in a tax return.
Links
New staff may mean tax bill deluge
Accountants report Revenue’s failures
The numbers you crunch tell a story. Your expertis...
23yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleHMRC sees the profit or loss made on buying and selling of exchange tokens as within the charge to Capital Gains Tax (CGT). Read More...
View articleThe recent IR35 case involving former Liverpool footballer and Sky Sports presenter, Phil Thompson, has drawn attention to the complexities and implic...
View articleFrom January 1, 2024, HMRC will implement new tax rules affecting individuals who sell items on platforms like Etsy, Depop, and Vinted. The new regula...
View articleHMRC reveal a small majority of people are soldiering a significant proportion of income and capital gains tax, following FOI request. Data has reigni...
View articleSteven Pinhey, technical officer at the Association of Taxation Technicians (ATT), considers how the rules on deductible expenses work in a social med...
View articleATT technical officer, David Wright, considers the implications of HMRC’s decision to remove employees with income between £100,000 and £150,000 from ...
View articleThis was the fourth largest borrowing year since records began in 1993 Read More...
View articleATT technical officer, David Wright, provides an overview of the welcome relaxation to CGT provisions for separating couples looking to transfer asset...
View article