HMRC got its sums wrong on the number of individuals taking up a tax break for married couples and civil partners after it counted claimants more than once.
The FT reports that in June last year the Treasury claimed 3m couples were already using the marriage allowance, a tax break introduced in 2015 that lets non-taxpaying spouses transfer 10 per cent of their £12,500 tax-free personal allowance to their partner.
However, on Thursday HMRC admitted it had miscalculated the total to the tune of more than 1m. Its revisions found the real number of claimants was likely to be below 1.8m for the 2018-19 tax year.
HMRC had inflated the figures by counting the same claimant multiple times, as it included their backdated claims as well as those for the current tax year.
“The original methodology was based on counting all the years for which applications were made.
This included unsuccessful claims and previous years claimed when individuals made backdated claims.
The new estimate of successful claimants does not include any estimate of backdated claims for that tax year."
Well done lads!
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.
Ken Frost has negotiated a 10% discount on any polices that may suit your needs.
However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.
What is Solar Tax Investigation Insurance?
Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Solar Tax Investigation Insurance
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"