HMRC tax error hits six million

Katrina Lloyd
clock

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

Join

 

Already a Professional Adviser member?

Login

More on Your profession

AI adoption not a 'must' for advice industry but it can leverage services

AI adoption not a 'must' for advice industry but it can leverage services

‘You are not struggling for clients, so it is a great place to be.’

Isabel Baxter
clock 01 May 2024 • 1 min read
Long-term financial planning proving increasingly difficult

Long-term financial planning proving increasingly difficult

Cash ISAs were the preferred vehicle for those planning over the long-term

Sahar Nazir
clock 01 May 2024 • 1 min read
Financial Conduct Authority's regulation 'lacks coherent vision'

Financial Conduct Authority's regulation 'lacks coherent vision'

‘It does feel like the wind has been in our faces over the past few months’

Isabel Baxter
clock 01 May 2024 • 2 min read