HMRC cockup - more info?

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Does anyone have any more info on the new HMRC cockup? could it be linked to incorrect TAX codes?

Interested for myself and my employees
 
This appears to be the new problem:

http://www.bbc.co.uk/news/uk-11186397

A computer ****-up:

The problems arise because at the end of each year, HMRC checks that the amounts deducted in tax and national insurance by employers using the PAYE system mach up with the information held on their records.

In the past, this was done manually on a case-by-case basis, but a new computer system has now been introduced to automate the checks.
 
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About £2bn has been underpaid via the Pay as You Earn (PAYE) system in the past two years, with about 1.4 million people owing an average of £1,500 each.
Whats owed is owed I suppose but at risk of sounding like Kevin the teenager that's so unfair for those caught out, they should allow a flexible repayment. im screwed if I get a letter, I'm already paying back tax from after I left uni 2 years ago (£700 to start paying back next April) if I get a letter for another £1500 I'm royally screwed...
 
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This appears to be the new problem:

http://www.bbc.co.uk/news/uk-11186397

A computer ****-up:

Sounds like the computer system is doing its job and spotting where people have been unknowingly paying the wrong amount of tax.

Pygmyshrew said:
Whats owed is owed I suppose but at risk of sounding like Kevin the teenager that's so unfair for those caught out, they should allow a flexible repayment. im screwed if I get a letter, I'm already paying back tax from after I left uni 2 years ago (£700 to start paying back next April) if I get a letter for another £1500 I'm royally screwed...

I think in most cases they'll get it back from changes to your tax code, but maybe not all...
 
Sounds like the computer system is doing its job and spotting where people have been unknowingly paying the wrong amount of tax.



I think in most cases they'll get it back from changes to your tax code, but maybe not all...

You'd certainly hope so. Not only would it be rather unfair for them to expect lump sums, they're certain to misallocate half those payments anyway!
 
It happens most years.

I've also heard people saying this new NPS isn't all its cracked up to be, but in all honesty PAYE and direct taxes is the last place on earth I'd want to work.
 
Not only would it be rather unfair for them to expect lump sums, they're certain to misallocate half those payments anyway!

They have said it will be dealt with in next years tax codes (overpayments).

I don't think they really are certain to misallocate half of these payments, the problems also arrise from employment issues out of the departments hands.
 
Taxation in this country needs such massive reform, to remove the sheer amount of chance for error and avoidance...

As a bonus, we could dramatically reduce the staff in HMRC as well at this time of austerity.
 
Remove the unfit computer systems then!

There already has been a dramatic reduction in the last few years, roughly a 1/4. More to come for sure, but reliance on computer systems has caused the majority of paye/benefit problems over the last 5 years.

But, your not the best person to speak to about tax really Dolph. Its theft and we shouldn't have a society is your mantra.
 
Remove the unfit computer systems then!

There already has been a dramatic reduction in the last few years, roughly a 1/4.

But, your not the best person to speak to about tax really Dolph.

The issue isn't the computer systems, it's the horrendous complexity of it all.

there are so many exemptions, extra liabilities, variations etc etc that it is a magnet for error and avoidance through careful structuring.

I'd have thought the idea of reducing tax avoidance would be appealing to you :confused:
 
But, your not the best person to speak to about tax really Dolph. Its theft and we shouldn't have a society is your mantra.

Our tax system is one of the longest and most convuluted in the world, I think only India's is longer. So yes, it could certainly do with some streamlining!
 
Horrendous complexity of PAYE? Unless you have a job with perks, its rather simple in all honesty.

Computer systems don't deal with variations well on the whole, but I don't really care I argue black you argue white.

This is not tax avoidance dolph.
 
Horrendous complexity of PAYE? Unless you have a job with perks, its rather simple in all honesty.

Computer systems don't deal with variations well on the whole, but I don't really care I argue black you argue white.

This is not tax avoidance dolph.

The tax code system is pretty horrendously complicated for no readily apparent reason, and an awful lot of people have perks of one form or another.

And anyone with an ISA is commiting tax avoidance ;)
 
But, your not the best person to speak to about tax really Dolph. Its theft and we shouldn't have a society is your mantra.

I'll address this as you've edited it in. My view is not that we shouldn't have a society, but that society should be proportionally funded, and no bigger than necessary, concerned with ensuring access to services, not providing the services.

Further, while I do think taxation is theft, that's the reason why it should be as small as practical, and as proportionally distributed as practical. I don't see why that is a problem.
 
I sent off a PAYE form about a year ago, and HMRC gave me a £450 or so tax rebate. I'm a little nervous that if I enquire, they might end up saying I was given more than I should have been. Is that an unfounded concern on my end?
 
It's actually pretty simple if you ask me. You have the starting code, any benefits? Adjust them trough the tax code and you can avoid faffing about with a tax return. If you think our overall system is bad you should have a look at US tax, that really is convoluted
 
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