HMRC are of the view that it will be unlikely to be able to collect the money owed before April 2011. At this point the tax debt becomes time barred, as tax underpayments have to be reclaimed within 4 years of the relevant tax year.
These debts have arisen because of errors on the PAYE codes.
Citywire reports that Dame Lesley Strathie will formally confirm this at the Commons Public Accounts Committee this week.
Tax does have to be taxing.
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