TaxPersonal TaxHMRC may have missed time limit on tax bills

HMRC may have missed time limit on tax bills

Taxman may have to write off some claims for underpaid tax

People hit with an unexpected tax demand may be able to refuse to pay up as
HM Revenue & Customs could have exceeded its own time limits in which to ask
for the money, experts said,
the
Scotsman reported on its web site
.

Under tax rules HMRC must issue demands for underpaid tax within 12 months of
the end of the tax year in which it became aware that people had underpaid, the
newspaper added.

It emerged over the weekend that nearly six million people have paid the
wrong amount of tax through the Pay As You Earn (PAYE) system.

Around 4.3 million of these have paid too much and are due a refund, but 1.4
million have underpaid and will have to handover an average of £1,428 each.

But if people provided HMRC with all the information they needed to get their
tax code right, it should have used this information within 12 months of the end
of the tax year in which it was received to claw back the extra money.

Further Reading:

HMRC
on the attack

HMRC
considers Time to Pay data secrecy

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