Warning HMRC income tax figures are incorrect

HMRC sends out P800 forms to taxpayers it believes have over- or underpaid income tax in earlier years. in 2011, HMRC sent out 1.2 million P800 forms concerning underpayment and around three million concerning overpayment. However, accountancy firm Kingston Smith has warned HMRC's estimates of taxpayers' earnings on these forms often "vary significantly" from their actual income. "When taxpayers receive a letter on official HMRC paper detailing their tax liability, many naturally assume the numbers are correct," said Andrew Shaw, head of personal tax at Kingston Smith. "Our expe...