New HMRC blunder: Writes to 4.7m people to correct tax mistakes

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Her Majesty's Revenue and Customs (HMRC) will write to 4.7 million taxpayers later this year to tell them they have over or underpaid their income tax for 2010/11.

HMRC said the letters will follow its annual round of checks to ensure the correct tax has been paid, the BBC reports. The Revenue estimates between 1.7 and 3.5 million people will receive a rebate of on average £340, but 1.2 million will find they still owe an average of £500. An HMRC spokesperson said the Revenue's computer system is now working well and is much faster and more accurate than previous systems. HMRC faced public embarrassment in September last year when, due to computer errors, it announced 5.7 million people had not paid the correct tax in 2008/09 and 2009/10. ...

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