You are here: Home - Saving & Banking - News -

More than 5m taxed incorrectly under PAYE

0
Written by:
20/06/2014
HM Revenue and Customs (HMRC) will write to 5.5m people to tell them they overpaid or underpaid tax under the Pay As You Earn (PAYE) system last year.

The Telegraph reported that the average error amount is estimated to be £300.

Approximately 3.5m taxpayers paid too little and will have to repay HMRC over future years. Some 2m paid too much and will be able to claim money back. The year prior just 5.2m people paid the wrong amount of tax through PAYE.

The growth in the number of errors is despite the introduction of HMRC’s Real Time Information (RTI) programme, which is meant to make the tax system more accurate. According to The Telegraph this programme will have cost taxpayers at least £273m by next year.

RTI requires employers to report wage payments to HMRC weekly or monthly.

David Heaton of Baker Tilly told The Telegraph: “RTI was supposed to make PAYE more accurate, not less. So why are there more [errors] this year, with RTI in full flow, than last year, when RTI was only a pilot? The number of PAYE differences has risen, not fallen. Something in RTI is not working.”

A spokesperson for HMRC told The Telegraph that growing number of errors was due to an increase in the number of people in employment and that the effects of RTI had not yet been reflected in the figures.

Tagged:

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Rents up 0.6% in May

Average rents in England and Wales increased by 0.6% in May and now stand at £745 per month.

Close