Well thats all right then!
"The UK's top tax official has apologised to the 1.4 million people facing an unexpected tax bill.
HM Revenue and Customs Permanent Secretary Dave Hartnett told those who will have to pay an average of
Don't knock it; an apology from any Government Dept. is rare! The PAYE system is and always has been no more than an estimate of an individuals tax liability for a tax year. In general over and under payments frequently occur and usually HMRC carry out a reconciliation at the tax year end. What has happened is that HMRC did not carry out a reconciliation last year i.e. for the year to 5th April 2009 and that reconciliation has been combined with the 2009/10 reconciliation raising the normal level and scale of the adjustments perceived to be required to correct the estimated PAYE collected. People receiving letters from HMRC bring news of either refund or underpayment should be cautious. The "reconciliation" referred to is simply checking the calculations and collections on a "known facts" basis. If HMRC do not know the full story or details of people's changed circumstances then the calculation will still be wrong. Those facing an underpayment calculation where HMRC have failed to act on previous notifications of changed circumstances that would eliminate the underpayment when taken into account can and should challenge the HMRC calculations, report the matter to the appropriate HMRC Officer and demand an apology. Do we need to be cautious about repayments? Yes; accepting repayments without entitlement can turn out to be a nightmare! It is also very unusual to see an announcement of this type. Perhaps it was a politically motivated announcement that went wrong? bjn
“It is also very unusual to see an announcement of this type. Perhaps it was a politically motivated announcement that went wrong?” Hmm interesting point, it does feel like HMRC were being leaned on to be a bit more customer friendly  |
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