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Six million people in UK have overpaid or underpaid tax

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DGP1
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Six million people in UK have overpaid or underpaid tax

Post by DGP1 »

http://www.bbc.co.uk/news/uk-11186397" onclick="window.open(this.href);return false;
Six million people in UK have overpaid or underpaid tax

David Gauke, Exchequer Secretary to the Treasury, said those who had underpaid would be given time to pay

Nearly six million people in the UK have paid the wrong amount of tax.

About £2bn was underpaid via the Pay as You Earn (PAYE) system in the past two years, with about 1.4 million people owing an average of £1,500 each.

But £1.8bn has also been overpaid and some 4.3 million people will get a rebate because they have paid too much.

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.
Not to worry you but I know that I had to pay extra tax last year (and probably this year) because RM didn't take enough off me in PAYE.
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Broxi51
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Re: Six million people in UK have overpaid or underpaid tax

Post by Broxi51 »

Another 6 million dsa letters to deliver during this free falling volume of mail :Applause
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bertie
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Re: Six million people in UK have overpaid or underpaid tax

Post by bertie »

That can't be right. no-one posts letters anymore, it will all be done by e-mail :wink:
BELIAL
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Re: Six million people in UK have overpaid or underpaid tax

Post by BELIAL »

DGP1 wrote:http://www.bbc.co.uk/news/uk-11186397
Six million people in UK have overpaid or underpaid tax

David Gauke, Exchequer Secretary to the Treasury, said those who had underpaid would be given time to pay

Nearly six million people in the UK have paid the wrong amount of tax.

About £2bn was underpaid via the Pay as You Earn (PAYE) system in the past two years, with about 1.4 million people owing an average of £1,500 each.

But £1.8bn has also been overpaid and some 4.3 million people will get a rebate because they have paid too much.

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.
Not to worry you but I know that I had to pay extra tax last year (and probably this year) because RM didn't take enough off me in PAYE.
Apparently if the coding supplied to RM by the revenue was incorrect even though the revenue were in possession of all relevant data ,and you were unaware of any inaccuracy ,then you are not liable to repay any shortfall ! The key tax law clause is A19 worth a search it could save some folks up to £1600 :wink:
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DGP1
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Re: Six million people in UK have overpaid or underpaid tax

Post by DGP1 »

Mine is being appealed at the moment but I still had to pay to avoid penalty charges :shock: :roll:
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POSTMAN
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Re: Six million people in UK have overpaid or underpaid tax

Post by POSTMAN »

Wonder if the union are looking into this,i guess they are tbf.
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Throgg
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Re: Six million people in UK have overpaid or underpaid tax

Post by Throgg »

DGP1 wrote:
http://www.bbc.co.uk/news/uk-11186397" onclick="window.open(this.href);return false;

Six million people in UK have overpaid or underpaid tax

David Gauke, Exchequer Secretary to the Treasury, said those who had underpaid would be given time to pay

Nearly six million people in the UK have paid the wrong amount of tax.

About £2bn was underpaid via the Pay as You Earn (PAYE) system in the past two years, with about 1.4 million people owing an average of £1,500 each.

But £1.8bn has also been overpaid and some 4.3 million people will get a rebate because they have paid too much.

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.

Not to worry you but I know that I had to pay extra tax last year (and probably this year) because RM didn't take enough off me in PAYE.

Apparently if the coding supplied to RM by the revenue was incorrect even though the revenue were in possession of all relevant data ,and you were unaware of any inaccuracy ,then you are not liable to repay any shortfall ! The key tax law clause is A19 worth a search it could save some folks up to £1600
Quote from http://www.taxaid.org.uk" onclick="window.open(this.href);return false;

"If the underpayment was the result of an HMRC error and there has been a long delay (in practice this usually means about 2 years) then it is possible to ask HMRC to consider writing off the debt if you could reasonably have thought your tax affairs were in order (in accordance with Extra Statutory Concession A19). This is not a straightforward concession to obtain and you may need to take advice first."

and quote from http://www.hmrc.gov.uk" onclick="window.open(this.href);return false;

"If you think that HMRC should have already collected the tax due in your Tax Calculation (P800) because the information had already been provided to them and HMRC have failed or delayed to use this information, then in some limited circumstances they may agree not to collect it.

An ‘Extra Statutory Concession’ (ESC A19) allows HMRC to do this and it only applies to individual taxpayers who owe Income Tax. It does not apply in any other circumstances where amounts owing to HMRC are in dispute.

The circumstances are that HMRC should have used the information provided within 12 months after the end of the tax year in which it is received
"

I don't think you're guaranteed to have the underpayment written off.
Tman
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Re: Six million people in UK have overpaid or underpaid tax

Post by Tman »

"
I don't think you're guaranteed to have the underpayment written off
.

Far from it. The tax office will just issue you with an amended tax code to make up the shortfall, and RM will collect it.
As a salaried/waged employee of a government agency, you haven't a hope of getting away with it. That's only for those whose tax affairs are more complex, and would require more work and effort from the HMRC workers.
BELIAL
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Re: Six million people in UK have overpaid or underpaid tax

Post by BELIAL »

That's only for those whose tax affairs are more complex, and would require more work and effort from the HMRC workers.

WRONG "it does not apply to companies, trusts or tax due from contractors or employers"

It is discretionary ,but 1.8 million pissed off people can certainly raise the level of discretion :chuckle
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Tman
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Re: Six million people in UK have overpaid or underpaid tax

Post by Tman »

WRONG "it does not apply to companies, trusts or tax due from contractors or employers"


Never said it was. You need to reread what was written, ie "Getting away with it" was for those with complex tax affairs, and that ain't the usual RM employee...... :whistle .
BELIAL
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Re: Six million people in UK have overpaid or underpaid tax

Post by BELIAL »

Tman wrote:
WRONG "it does not apply to companies, trusts or tax due from contractors or employers"


Never said it was. You need to reread what was written, ie "Getting away with it" was for those with complex tax affairs, and that ain't the usual RM employee...... :whistle .
Quite right ,profuse apologies, just goes to show you shouldn't put people in boxes :d'oh! :chuckle
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Destroyer
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Re: Six million people in UK have overpaid or underpaid tax

Post by Destroyer »

Are we affected ???
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TrueBlueTerrier
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Re: Six million people in UK have overpaid or underpaid tax

Post by TrueBlueTerrier »

Destroyer wrote:Are we affected ???
Maybe yes Maybe No:

Those most affected are the self employed, those that have more than 1 job, and those that have changed employers in the last 2 years.

But that list is not exhaustive so some RM employees may be affected, you won't know for sure until you get a letter or when the tax code changes or not in April next year.
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Stormproof
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Re: Six million people in UK have overpaid or underpaid tax

Post by Stormproof »

It'll probably turn out we arn't entitled to the tax deduction for cleaning our uniform so that £90pa for x amount of years to pay back :cuppa
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guvenor
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Re: Six million people in UK have overpaid or underpaid tax

Post by guvenor »

what uniform weve been told no new uniform until all revisions and agreements sorted looks like we could be worst dressed do in the country then cos im not buying new gear to bale out rm