HMRC to repay £2.5bn to six million

The taxman is repaying almost £2.5bn in overcharged tax and interest to clear a backlog of errors that goes back to 2003, according to the Daily Mail. Taxpayers will on average receive a repayment of overcharged tax of £300 plus interest of up to 4%. The first refund letters will be sent out later this month, but the whole process will run for more than 12 months, with final payments not made until December 2012. Matt Coward, a partner at accountant Price Bailey in the City of London, says: ‘There is no easy way for people to tell whether they can expect a letter or not. It will co...