PROBLEMS WITH HM Revenue & Customs’ PAYE system mean that some pensioners will have to pay back tax owed.
People who started receiving their state pension in 2010/2011 have not had the new pension included in their PAYE codes because of faults with the National Insurance and PAYE Service (NPS) computer. This has meant that some pensioners have underpaid tax. HMRC has said that it has no power to write this off as it is has happened in this tax year, meaning that the affected taxpayers will have to pay the money back.
The ICAEW has said that where the tax paid is under £2,000, they will be coded out in future years’ PAYE codes. Where the money owed is more than £2,000, HMRC has said it is prepared to allow taxpayers to code this out over three years.
This is the third year in a row these errors have occurred, but HMRC had agreed to write off tax underpayments in previous years.
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy