HMRC faces potential £1.6 billion payout
HM Revenue and Customs is on the verge of a highly embarrassing and potentially costly correction program after figures released today suggested that 4.5 million workers in the UK were issued with the wrong tax code. There have been 20 million queries about tax codes in March 2009 against 16 million last year amid claims that major mistakes have been made which could ultimately prove very costly.
Quite how the errors occurred is shrouded in secrecy at this moment in time, but of the 4.5 million workers who appear to have overpaid their taxes they could be in for a significant rebate in the medium term. Whether the various changes in the UK taxation system, which ultimately saw taxes rise, has caused a problem with the HMRC computer system or some other gremlin has managed to cause the mayhem has yet to be confirmed.
It is also interesting to note that 1.5 million people in the UK stand accused of underpaying their taxes because they also had incorrect tax codes, something which could see the authorities reclaim up to £400 million. There are growing concerns that the £1.6 billion owed to UK taxpayers could prove very difficult to obtain in the short term, when many people need it most, while those who have underpaid through no fault of their own are likely to be asked to pay the additional amounts as soon as possible.
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