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Tax error post arriving across UK | Tax error post arriving across UK |
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Thousands of letters informing people that they have paid too little or too much tax for the last two years are due to arrive at addresses across the UK. | Thousands of letters informing people that they have paid too little or too much tax for the last two years are due to arrive at addresses across the UK. |
Between now and Christmas, about 5.7m people will learn whether they will get a rebate or face having to pay money back following errors by tax officials. | Between now and Christmas, about 5.7m people will learn whether they will get a rebate or face having to pay money back following errors by tax officials. |
Some 1.4m people have had an average of £1,428 too little tax deducted by Her Majesty's Revenue and Customs. | Some 1.4m people have had an average of £1,428 too little tax deducted by Her Majesty's Revenue and Customs. |
The first letters were sent out a few weeks ago as part of an initial pilot. | The first letters were sent out a few weeks ago as part of an initial pilot. |
Now HMRC is stepping up its efforts to resolve the situation by sending out hundreds of thousands of letters every week between now and December. | |
Of the 5.7m targeted, 4.3m people have overpaid tax in the past two years by an average of £400. | Of the 5.7m targeted, 4.3m people have overpaid tax in the past two years by an average of £400. |
Of those who underpaid, people owing less than £2,000 will be able to pay the money in monthly instalments taken from their salary over one to three years. | Of those who underpaid, people owing less than £2,000 will be able to pay the money in monthly instalments taken from their salary over one to three years. |
But those who owe more than £2,000 will be told to pay up now, or to discuss options to spread the load. | But those who owe more than £2,000 will be told to pay up now, or to discuss options to spread the load. |
It is estimated 2.3 million people underpaid income tax during the past two tax years because of errors in their Pay As You Earn (PAYE) tax code. | It is estimated 2.3 million people underpaid income tax during the past two tax years because of errors in their Pay As You Earn (PAYE) tax code. |
The mistakes were made because of miscalculations made by HMRC tax officials, and a new computer system introduced by HMRC in 2009 allowed more discrepancies to be identified. | The mistakes were made because of miscalculations made by HMRC tax officials, and a new computer system introduced by HMRC in 2009 allowed more discrepancies to be identified. |
About 900,000 taxpayers will not have to pay anything after the government raised the write-off threshold from £50 to £300. | About 900,000 taxpayers will not have to pay anything after the government raised the write-off threshold from £50 to £300. |
Details of the tax errors first emerged in September when Treasury minister David Gauke said that in the current financial climate, the government was not in a position to "just wave goodbye" to the money owed. | Details of the tax errors first emerged in September when Treasury minister David Gauke said that in the current financial climate, the government was not in a position to "just wave goodbye" to the money owed. |
He said the government had inherited the problem and the PAYE system, which was created in the 1940s, was struggling to cope with modern working patterns. | He said the government had inherited the problem and the PAYE system, which was created in the 1940s, was struggling to cope with modern working patterns. |
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