The annual "year end reconciliation" process is due to begin in the second half of July at HMRC. The FT reports that approximately 1.2M people have underpaid tax in the 2010/11 tax year, the average money owed being around £500-£600.Within the 1.2M are an estimated 160,000 who received the basic state pension for the first time in the 2010/11.
HMRC will also be issuing between 1.7m to 3.5m repayments towards the end of July of around £340 per person.
HMRC is of the view that it is in a "much better place" this year, as the new computer system is "working fast and efficiently".
In theory, once the real time PAYE system is introduced and fully operational by 2014, these reconciliations will be consigned to history. However, as I noted last week, that deadline may well be missed.
Tax does have to be taxing.
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I wonder if most of the repayments will be selected for security checking.
ReplyDeleteIts not their money why should they worry about checking, far better to pay it all than get even more MP's complaints.
ReplyDeleteMr Murphy said: "By 2014 the issue of PAYE underpayments should be consigned to the past."
ReplyDeleteHe should do stand up.