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HMRC PAYE blunder highlights complexity of tax system
Posted Sep 7, 2010
With millions of people due to receive PAYE tax rebates or demands for underpaid tax shortly, the ACCA says that HMRC do not have enough staff to deal with the inevitable queries which will result from the blunder.
Perhaps justifying the Government's creation of the Office of Tax Simplification (OTS), the accountancy body's head of taxation, Chas Roy-Chowdhury said:
"This issue highlights the problems caused by the complexity of the UK's tax system. Only today we also hear that millions of pounds are owed to those who do their own tax returns due to errors in the self assessment system. Self assessment tax payers and employers are clearly having problems with tax codes. I know that many will be asking whether they can trust the UK's tax regime."
Anyone affected should know that HMRC has a 'time to pay strategy' in place, accessible by calling 0845 302 1435. Although this helpline is listed as a business support number, it is for individuals as well as businesses.
What if you get a demand for payment?
Here are some tips from the ACCA if any contractors receive a demand for payment from HMRC:
1. If you don't trust the taxman's judgement, seek advice from a professionally qualified accountant or from the Citizens Advice Bureau.
2. If you cannot pay the full amount, negotiate a suitable timescale. It seems likely that HMRC will negotiate, but this will be on their terms - see here.
3. If you speak to HMRC, keep all records of phone conversations - time and date them and get a name, even a first name, if you speak to anyone.
4. In the future, always check your own tax code which can be found on payslips - don't just leave it up to your employer or the taxman. See this HMRC guide to tax codes.
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