Her Majesty's Revenue and Customs have announced that about six million people are set to receive tax rebates averaging £400, but it's not all good news as another million will learn they have underpaid their tax by about £600. Letters will be going out in the next few months, and those who owe money would be able to pay in stages.
This is the second year tax and National Insurance discrepancies have been identified by HMRCs new computer system but they hope discrepancies will reduce "as the new system beds in".
In a similar exercise last year, Revenue and Customs were criticised for being insensitive over their treatment of underpayers but this time it's being stressed that they can spread what they owe over time by adjusting their tax code.
The repayments which relate to overpayments in 2007-08 or earlier are due to be settled by December 2012 and will include interest.
If you receive a letter from HMRC and are unsure whether the under/over payment is correct or if you would like some further advice, you should contact us as soon as possible after you receive the letter and we would be pleased to help.
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At Ritson Smith we try to make the audit process as painless as possible. Our staff are experienced in dealing with a wide variety of clients and systems and will tailor the testing to minimise the disruption to your working day.
Ritson Smith's tax specialists not only help you avoid tax penalties, but also draw up detailed plans to ensure you can gain the maximum legitimate benefits from all current sources of tax relief.
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