One Million Hit By Taxman Errors
MAKE sure to check just how much income tax you are paying, as our old friend the Taxman is back in the news, but this time for making quite a large hash of income tax collection. (Pic: Hack)
According to the National Audit Office, HM Revenue and Customs calculated the tax correctly in 95 per cent of cases in the 2006/07 tax year. However, that still left one million people paying the wrong amount of tax, with £125million uncollected and a massive £157million overpaid.
Indeed while the average underpayment per person was £250, the average overspend was around £290.
John Bourn of the NAO says: “HMRC has improved its processing of income tax returns, but there are still substantial numbers of taxpayers who are affected by processing errors. Vulnerable groups such as pensioners are likely to be disproportionately affected.”
As well as OAPs, people with more than one job are also likely to have been affected.
Chairman of the Public Accounts Committee, Edward Leigh MP, is concerned by the findings. Says he: “Errors don’t only cause financial problems, they also result in anxiety and wasted time and effort in putting matters right. Many of the people who are affected are vulnerable members of society and deserve better.”
The NAO did find, however, that the Revenue’s plans to computerise its clerical work had led to a decrease in the number of mistakes made.
But not a big enough decrease, apparently. Perhaps they need anew and more expensive system? Or more management consultants..?
Posted: 6th, July 2007 | In: Money Comment (1) | TrackBack | Permalink
