Nearly six million people have paid the wrong amount of tax with around £2bn underpaid via the Pay As You Earn(PAYE) system in the past two years.
Around 1.4 million people owe an average of £1,500 each as a result of the error but £1.8bn has also been overpaid and 4.3 million people are due a rebate, the BBC reports. Millions of letters will be sent to taxpayers across the UK informing them of errors in their contributions. The first 45,000 are expected to arrive on Tuesday, with 30,000 informing recipients they are due a rebate of on average £418. The remaining 15,000 letters will tell taxpayers they have underpaid and will have their tax code altered next year to recoup the money. It is thought that some individuals may...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes