HMRC recalculates bills for 5 million taxpayers
Some 5.5 million people overpaid or underpaid tax last year, HM Revenue & Customs has admitted. It means they will be clawing back up to £1bn from unsuspecting taxpayers for unpaid tax in the 2012-13 financial year.
But up to 3.5 million will receive an average repayment of between £350 and £500. That means HMRC will be handing back up to £1.75bn.
About 2 million taxpayers will receive surprise demands after the Revenue calculated they underpaid tax in the 2012-13 financial year. They will be asked to make up an average shortfall of between £400 and £500, although the Revenue said it allow the shortfalls to be paid during the 2014-15 tax year.
HMRC began the laborious process of contacting the millions affected on Wednesday after it started its annual PAYE End of Year Reconciliation process for 2012-13. With so many people to contact, some taxpayers won't find out whether they owe money – or are due a refund – until October.
An HMRC spokesperson explained: "Around 85 per cent of pay as you earn taxpayers pay the right tax throughout the year. But if a customer's circumstances have changed over the course of the year – if, for example, they have moved in and out of work, or received new benefits – we need to work out whether they have paid too much or too little tax. This is the normal process that the PAYE system has used for 70 years."
- 1 I'm A Celebrity 2014: Jungle security stepped up after murder and 'suspicious death' near to camp
- 3 Jeremy Hunt: 'I took my children to A&E because I didn't want to wait for GP appointment'
- 4 Girl, 7, gets Tesco to remove 'stupid' sign suggesting superheroes are 'for boys'
- 5 This letter from a reader explains why women can’t play football
Sarah Vine criticises lesbian mother Jack Monroe: 'If she was unsure about her sexuality, she should have taken greater precautions'
Black Friday 2014: Opening times for Asda, John Lewis, PC World, GAME and Argos
Three-year-old boy accidentally shoots dead his mother in Tulsa, Oklahoma, as she changes her younger daughter's nappy
Michael Brown shooting: Driver smashes into crowd as protests erupt across the US during a second night of unrest
Jeremy Hunt: 'I took my children to A&E because I didn't want to wait for GP appointment'
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Exclusive: UK approved £7m Israeli arms sales in six months before Gaza conflict
iJobs Money & Business
£16000 - £18000 per annum: Langley James : IT Support; Helpdesk, VMware; Manch...
£35000 - £450000 per annum + £3k car, £70k ote: h2 Recruit Ltd: Do you want to...
£Attractive Package: Citifocus Ltd: Prestigious financial institution seeks to...
£Negotiable: Citifocus Ltd: Experienced operational risk professional with ban...