MSE News: Over a million to be told they owe more tax

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"More than one million owe cash after more tax errors were found. Millions others will get rebates ..."

Read the full story:
Over a million to be told they owe more tax

Esoog

Knowing my luck they'll find that I owe them more than the £2.5k I'm already paying back

System

This latest article tends to contradict some information from an earlier article about tax reconciliations done in the previous batches.

So, how reliable is the information from the "HMRC spokesperson" ?

See : http://www.moneysavingexpert.com/news/reclaim/2011/01/100000s-more-tax-errors-found

Where it says that :

Gauke adds that HMRC is also working to clear the backlog of unreconciled tax cases from earlier years, but would not be chasing people for unpaid tax for periods before the 2007-08 tax year, although it would offer refunds to people who overpaid.

Have HMRC / the government changed their minds and are now going to reclaim underpayments for earlier years, or is this latest information wrong ?

dtaylor84

BAA1 wrote: »

Have HMRC / the government changed their minds and are now going to reclaim underpayments for earlier years, or is this latest information wrong ?

I can see nothing in the latest information that contradicts the statement you quoted.

ScarletBea

They honestly don't know what they're doing, so please, question everything you get.
I received a letter saying I'd overpaid, but when I looked at it properly, I realised they'd forgotten to include as income my savings interest (where I need to pay extra tax). And that was clearly stated in the PAYE code.
So I called them, they've corrected the calculations, and I'll still receive some money, but much less than they said!

System

dtaylor84 wrote: »

I can see nothing in the latest information that contradicts the statement you quoted.

The article says:

The spokesman says: "Money that is owed going back many years is now going to be automatically paid back as we get the tax system up to scratch.

Which some MSE members are reading as being another batch of reconciliations which result in an underpayment for tax years prior to 2007-08, read other similar threads posted today on this forum.

You will notice that my post was in the form of a question seeking confirmation of the facts

dori2o

The way it should read is, anything owed to HMRC from BEFORE 07/08 will be written off as it is already outside the timeframe for collection. Those cases where tax has been overpaid for 05/06 to 07/08 will be refunded to the individuals.

As for the report, again it's nothing more than an attack on HMRC, DESPITE the fact that this is the normal proceedure. HMRC now has all the information it needs to review the 10/11 tax year. There will be cases where peoples circumstances have changed and this is the first HMRC will be aware of it.

This is how the system works. They issue a code at the start of the year using information they know at the time (information from the April before, then the employers use that to calculate the tax due. If there have been any changes to salary, employer benefits etc that HMRC have not been made aware of, then this can result in over or underpayments of tax.

This isn't a HMRC Blunder as is being reported, it's the natural process that takes place each year.

Yet again we see lazy, antagonistic reporting from MSE.

Pennywise

dori2o wrote: »

This isn't a HMRC Blunder as is being reported, it's the natural process that takes place each year.

Let's wait to see the reasons for the underpayments shall we?

It's clear from fora like these that a lot of the previous years' underpayments were HMRC's fault, mostly because they didn't act on information received, i.e. where people started getting state pension or other taxable benefits which HMRC were told about by other Govt agencies, or failing to act on P45/P46s issued to them by new employers. If it's the same again, then, yes, it's HMRC's fault.

I've absolutely no doubt that some of the cases will be because employers havn't submitted the right forms for new employees properly, or taxpayers havn't told HMRC of new sources of income, in which case, yes, those aren't HMRC's fault.

But it's premature to claim that it's everyone else's fault but HMRC which is what you're trying to imply. Let's sit back and wait to see why most of these underpayments arose and then we can apportion blame. If it turns out that HMRC are mostly blameless then fair enough.

roddydogs

Why is this news, it happens every year, dosent it? cue SC A19 again

SUGARSPICE

Hi.

Is there anyone on here that could help me to see if Im owed a tax rebate?

Ive got two tax rebates in the past.But I cant figure out how they have done it.

I got some help from someone on here but cant remember their forum name.

:beer:

jem16

SUGARSPICE wrote: »

Hi.

Is there anyone on here that could help me to see if Im owed a tax rebate?

You would need to post the figures and tax code from the year in question and then we could work out if you are due any rebate?