Thousands told to repay employee 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.”


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