Business News
Check the doormat for the tax man
HMRC has confessed that up to 4.7 million taxpayers will be informed by post that they have either paid too much (here’s hoping) or too little income tax for the financial year 2010/11. The reconciliation exercise HMRC roll out every year to highlight any errors in the tax paid will be rolled out in July of this year, with an estimated 1.7 to 3.5 million people being repaid an average of £340.00 each, and an estimated 1.2 million will be required to pay between £500-£600 each.
A similar exercise was executed for the years 2008/09 and 2009/10 after it emerged last September that HMRC had not calculated the tax correctly for around 5.7 million tax payers, resulting in 1.4 million people owing on average £1,428.00 each, with approximately 900,000 of the lucky ones having their debts of up to £300.00 written off.
This year, those in line for a rebate will get the good news on their door mat in August and September, whilst those with the less good news will receive their bills after this with the final documents issued out in December. Those hit with a charge will have an opportunity to contest the calculations and challenge them if they believe them to be inaccurate. If the bill amount is upheld, the money will taken from their earnings each month through a change in tax code for 2012/13, with a higher threshold this time of up to £3000.
HMRC commented, "We expect that hardly anyone will be faced with a bill larger than £3,000, but if they want to pay us in one go by cheque, they can." That's good of them.
