HMRC tries to head off PAYE appeals problems
HM Revenue & Customs briefs accountants on PAYE appeals to avoid a potential avalanche of unexpected demands
Tax officials last night tried to stop people hit by the PAYE blunder
successfully appealing against unexpected demands.
In a briefing to
accountants,The Times
reported, officials clarified the rules, in effect limiting the number of
people likely to be able to evade the new demands.
The rules state HMRevenue & Customs must issue demands for underpaid tax
within 12 months of the end of the tax year in which it became aware of the
situation.
If the Revenue does not comply with these rules, it has to consider
applications not to repay tax owed if the people could have reasonably assumed
that their tax code was correct and if they are in financial hardship.
The taxman issued a series of examples to leading accountants in efforts to
clarify who qualifies for the concession as fears grew that HMRC would be
inundated with unfounded applications.
Further reading:
Government
proposes ‘real time’ changes to PAYE payments