Government failure and PAYE
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This morning it was announced that in total c.6 million people have either under-paid or over-paid their taxes - through the fault of the PAYE direct tax system the HMRC operates.
The total amount that was overpaid by taxpayers was £1.8 billion, meaning an average rebate of just over £400.
However, more worrying for most will be, the c.1.4 million taxpayers who were overpaid to the tune of £2 billion - which means on average those people face a demand for £1,428 each.
Although to compound the government failure element, the govt spent around £350 million overhauling the system in the last 2 years, but it seems that this has merely led to even more over/under-payments. The taxman collected £238m too much from taxpayers as a result of PAYE errors in the 2009-10 tax year – an increase of £96m on the previous tax year, according to National Audit Office.
More here…
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