Thursday 20 October 2011

Millions set for Tax Rebates

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.

H.M. Revenue and Customs (HMRC) said letters would begin going out in the next few months, with those owing money able to pay in stages either by having their tax code adjusted or coming to an agreement with HMRC.

It is the second year tax and National Insurance discrepancies have been identified by a new computer system.

Those who will be told they have underpaid tax are expected to owe between £500 and £600 on average.

In some cases, it appears the system has not been able to sort through and separate information on people leaving jobs, meaning those who have stopped working and started drawing a pension are being treated as if they have two income streams. The problems are also affecting people with more than one job, or those who have changed jobs in the past few years.

HMRC hopes to have the process completed by December 2012.

If you receive any such correspondence and would appreciate a second opinion then please do get in touch. Please visit www.wardwilliams.co.uk for more information.

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