PAYE reconciliations show sharp improvement

PAYE RECONCILIATIONS have shown a sharp improvement from last year, HM Revenue & Customs officials have said.

The number of people receiving repayments for the 2010-2011 tax year will be between 1.7 million and 3.5 million; they will receive less than last year’s average repayment of £340, a Revenue official told Accountancy Age.

Around 1.2 million people have underpaid tax, with an average underpayment of between £500 to £600. These numbers will be clarified following further review in July.

Last year, it was revealed that up to 15 million taxpayers were affected by problems moving to the new National Insurance and PAYE Service computer system. This resulted in an estimated £2bn underpaid and £3bn overpaid tax revenue.

HMRC is said to be more optimistic this year and there is a feeling there that the systems have genuinely improved.

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