Sunday 4 December 2016

Millions face tax demand after UK error

Andrew Woodcock

Published 05/09/2010 | 05:00

Nearly six million people in the UK will be informed over the coming months that they have paid the wrong amount of tax, with 1.4 million facing demands for more payments, it was revealed yesterday.

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A total of €2.4bn has been underpaid through the Pay as You Earn (PAYE) system over the past two years, meaning 1.4 million taxpayers will be required to shell out an average €1,800.

Meanwhile, 4.3 million people will have better news, with the taxman telling them that they have paid too much.

With a total overpayment of €2.15bn, each could receive an average rebate of €500.

The first 45,000 letters from British revenue agents are expected to arrive on doormats this Tuesday. Some 30,000 will alert taxpayers that they are due a rebate and another 15,000 will tell people they have underpaid and their tax code will be altered next year to claw back the money.

Millions more letters will go out by Christmas, giving a festive note to the rest of those caught up in the blunders.

With an average additional payment of €1,710 being demanded, those affected by underpayments could be more than €120 a month worse off next year while the cash is recouped.

In some cases, individuals may face both under- and overpayments, which could cancel one another out.

Sunday Independent

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