This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/uk-15363168
The article has changed 6 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Millions in line for tax rebates | Millions in line for tax rebates |
| (40 minutes later) | |
| About six million people are set to receive tax rebates averaging £400, while another million will learn they have underpaid their tax by about £600. | |
| Her Majesty's Revenue and Customs (HMRC) said letters would begin going out in the next few months, with those owing money able to pay in stages. | Her Majesty's Revenue and Customs (HMRC) said letters would begin going out in the next few months, with those owing money able to pay in stages. |
| It is the second year tax and National Insurance discrepancies have been identified by a new computer system. | It is the second year tax and National Insurance discrepancies have been identified by a new computer system. |
| HMRC said the number of cases would reduce "as the new system beds in". | HMRC said the number of cases would reduce "as the new system beds in". |
| Those who will be told they have underpaid tax are expected to owe between £500 and £600 on average. | Those who will be told they have underpaid tax are expected to owe between £500 and £600 on average. |
| Interest paid | |
| "In a similar exercise last year, Revenue and Customs were criticised for being insensitive over their treatment of underpayers," said BBC news correspondent John Andrew. | "In a similar exercise last year, Revenue and Customs were criticised for being insensitive over their treatment of underpayers," said BBC news correspondent John Andrew. |
| "This time it's being stressed that they can spread what they owe over time by having their tax code adjusted." | "This time it's being stressed that they can spread what they owe over time by having their tax code adjusted." |
| The rebates, which relate to overpayments in 2007-08 or earlier and will include interest, are due to be settled by December 2012. | The rebates, which relate to overpayments in 2007-08 or earlier and will include interest, are due to be settled by December 2012. |
| It is estimated these will cost the government more than £2bn. | It is estimated these will cost the government more than £2bn. |
| "Money that is owed going back many years is now going to be automatically paid back as we get the tax system up to scratch," said an HMRC spokesman. | "Money that is owed going back many years is now going to be automatically paid back as we get the tax system up to scratch," said an HMRC spokesman. |
| "We are getting cases that were left unreconciled up to date as quickly as possible. Anyone owed money will be paid back with interest without the need to contact us. | "We are getting cases that were left unreconciled up to date as quickly as possible. Anyone owed money will be paid back with interest without the need to contact us. |
| "The fact is there will always be some cases at the end of every tax year that require an under or overpayment to balance but these cases will reduce as the new system beds in." | "The fact is there will always be some cases at the end of every tax year that require an under or overpayment to balance but these cases will reduce as the new system beds in." |
| MPs critical | |
| Earlier this year, the House of Commons Public Accounts Committee criticised HMRC's management of the income tax system. | Earlier this year, the House of Commons Public Accounts Committee criticised HMRC's management of the income tax system. |
| The MPs said up to 22 million people had not been taxed accurately since 2004-05 causing "unacceptable uncertainty and inconvenience". | The MPs said up to 22 million people had not been taxed accurately since 2004-05 causing "unacceptable uncertainty and inconvenience". |
| Last year, HMRC identified 4.3 million people due refunds for overpayments and some 1.4 million who owed the taxman after paying too little. | |
| The amounts owed averaged just over £1,400, while a further 900,000 underpayments of up to £300 were written off. | |
| HMRC Permanent Secretary Dave Hartnett was widely criticised for a lack of sympathy toward those facing an unexpected bill, after he said tax reconciliation was a routine measure. | |
| He later apologised and insisted HMRC did "not underestimate the distress caused to taxpayers". |