TaxPersonal TaxThousands told to repay employee benefits

Thousands told to repay employee benefits

HMRC may ask taxpayers to repay their childcare, insurance benefits

TAXPAYERS who received car, childcare and insurance refunds may have to repay their benefits to the taxman, The Sunday Times reports.

Accountants are warning the flaw in how employee benefits are calculated may lead to thousands repaying their benefits.

HM Revenue and Customs (HMRC) said this was not a mistake but simply how the tax system works.

“Some will have received a repayment and now find they have underpaid. We are sorry about that, but it is not an error or a bungle – that is the way the tax system works. The adoption of a real-time PAYE system will make this a thing of the past,” HMRC told the Sunday Times.

Richard Mannion at Smith & Williamson said tax payers who believe they have been a tax request is incorrect, “explain your reasons in writing to your tax office. Given HMRC’s recent poor record in answering letters, make sure you keep a copy and follow it up if you don’t hear back.”

 

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

7h Lucy Skoulding, Reporter
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

5m Emma Smith, Managing Editor
Rangers tax case to have ‘dramatic’ consequences for football and business

Legal Rangers tax case to have ‘dramatic’ consequences for football and business

5m Emma Smith, Managing Editor
HMRC collects record £5bn in inheritance tax

HMRC HMRC collects record £5bn in inheritance tax

6m Emma Smith, Managing Editor
The top three issues that the next government must address for accountants

Making Tax Digital The top three issues that the next government must address for accountants

6m Emma Smith, Managing Editor
HMRC cuts over 150 offices to reduce running costs

Corporate Tax HMRC cuts over 150 offices to reduce running costs

11m Stephanie Wix, Writer
Finance Bill 2017: Corporate tax reporting requirements 'a burden'

Business Regulation Finance Bill 2017: Corporate tax reporting requirements 'a burden'

1y Stephanie Wix, Writer