TaxPersonal Tax‘Hundreds of thousands’ hit by second HMRC blunder

‘Hundreds of thousands’ hit by second HMRC blunder

Further HMRC miscalculations leave thousands of taxpayers facing uncertainty over their tax position

‘Hundreds of thousands’ hit by second HMRC blunder

“HUNDREDS OF THOUSANDS” of workers are facing uncertainty after a leaked HMRC e-mail showed that their final bills last year may have been miscalculated.

The private exchange shows that those who underpaid or overpaid income tax last year may still have paid the wrong amount, the Telegraph reports.

Most have already been sent new demands or refunds, but will now have their liabilities recalculated once more.

HMRC has ceased sending repayments until the problems are resolved.

In June, HMRC admitted it had collected the wrong amount of tax from more than five million people in the 12 months to April 2014.

Since then, the taxman has sent those affected notification letters explaining how it would claw back or issue refunds for on average £300.

In an email leaked to the Telegraph, a select group of senior HMRC staff and accountants were told “thousands” of mistakes were made.

The recipients were advised to tell taxpayers who questioned their bills “not to repay any underpayment” of tax.

It added anyone who has received a cheque should not cash them, and anyone who has already done so my see them clawed back.

The introduction of real-time PAYE (RTI) reporting – which sees employers report the amounts of money paid to staff on a weekly or monthly basis, rather than annual – was supposed to eliminate errors.

HMRC estimates that fewer than 100,000 people would be affected by the new mistakes, but admitted it did not know the extent of the problem.

The email, which was sent to senior HMRC staff and accountants, said: “We are urgently investigating these cases and will look to resolve the matter in the next six to eight weeks.

“We currently do not know the scale of the issue but some large employers are involved, so several thousands of employees may be affected.”

Related Articles

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

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

1w Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

4m 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

4m Emma Smith, Managing Editor
Finance Bill 2017: Corporate tax reporting requirements 'a burden'

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

11m Stephanie Wix, Writer
PAC raises “serious concerns” about HMRC’s digital plans

Corporate Tax PAC raises “serious concerns” about HMRC’s digital plans

11m Stephanie Wix, Writer
HMRC collects record £5bn in inheritance tax

HMRC HMRC collects record £5bn in inheritance tax

4m 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

5m Emma Smith, Managing Editor
HMRC cuts over 150 offices to reduce running costs

Corporate Tax HMRC cuts over 150 offices to reduce running costs

9m Stephanie Wix, Writer