Five million UK workers face uncertainty after tax bills wrongly calculated twice in HMRC blunder

[webfact]

Five million UK workers face uncertainty after tax bills wrongly calculated twice in HMRC blunder
Uncertainty for millions as a leaked email shows the taxman made miscalculations in many 'final' bills for last year
By Dan Hyde

LONDON: -- More than five million British workers face uncertainty after leaked emails revealed that their tax bills for last year may have been wrongly calculated.

HM Revenue and Customs has privately admitted that those who underpaid or overpaid income tax last year may still have paid the wrong amount.

Most have already been sent new tax demands or sent repayments – but now face the prospect of having their bills recalculated once again. HMRC has stopped sending repayments until the crisis is resolved.

Accountants expressed disbelief. Elaine Clark of the Cheapaccounting tax practice said: "This is extraordinary, a disaster, and heads need to roll at HMRC."

HMRC said tens of thousands would ultimately be affected but admitted it currently had no idea about the scale of problem.

Four months ago, HM Revenue & Customs admitted it had collected the wrong amount of tax from more than five million people in the 12 months to April 2014.

Since then, the taxman has sent those affected notification letters explaining how it would claw back or issue refunds for on average £300.

In an email leaked to The Telegraph, a select group of senior HMRC staff and accountants were told "thousands" of mistakes were made.

The recipients were advised to tell taxpayers who questioned their bills "not to repay any underpayment" of tax.

Full story: http://www.telegraph.co.uk/finance/personalfinance/tax/11150266/Five-million-UK-workers-face-uncertainty-after-tax-bills-wrongly-calculated-twice-in-HMRC-blunder.html

-- The Telegraph 2014-10-08

[draftvader]

At least they are admitting to it....I guess?!!?

[JoePai]

Love the name of this company : Cheapaccounting tax practice

[smedly]

They have made a mess of my tax for several years now requiring me to go through a time consuming process and to provide evidence in detail through various letters and phone calls, I was told in recent years it has become a regular occurrence, what they seem to do is make assumptions based a lot of the time on blatant guess work, not sure if they outsourced some of the administration (like the passport office) or not

[Suradit69]

LONDON: -- More than five million British workers face uncertainty after leaked emails revealed that their tax bills for last year may have been wrongly calculated.

It's all down to the education system and some confusion over the current technology, or does that only apply when mistakes are made in Thailand?

wrongly calculated twice

They've begun work on the third attempt.

Edited October 9, 2014 by Suradit69

[Estrada]

They made a mess of my tax deductions over regarding my UK pensions and recently sent me a refund cheque. This is going to cost me bank charges to get it processed and it was their fault not mine.

[godden]

i keep below the radar

[humqdpf]

This is a lot more serious than some mere bungling of tax payments. Dealing with the UK tax authority (HMRC) It is like having to play a game with a 10 ton gorilla according to his rules. When you make a mistake, it is your fault. When he makes a mistake, you pay.

The following has happened to one family I know in the UK. They were told by HMRC that they had overpaid and then they received the refund. They then spend the refund (they have young kids - plenty to spend the refund on!) only to be told a year later that it was a mistake and now they have to repay. This has created significant hardship for them and their children.

My best advice is if you have significant tax to pay in the UK, get a tax accountant to do the paperwork for you - it will be worth it as they will no doubt find some deductions that you did not realise and they know when the HMRC get it wrong, thereby saving you again.

[Nuddy]

A taxation Departrment making a mistake! Thats unheard of in the world.!

[Dante99]

Yes, we do love the developed civilized world.

[samran]

Love inland revenue. Left the UK and every year for four years they kept sending me nasty letters saying I was being fined for not doing a tax return. Each year I sent them the same letter telling them I has left and reminding them that I has told them the same thing a year earlier. They eventually got the message.

Edited October 9, 2014 by samran

[MJP]

Love inland revenue. Left the UK and every year for four years they kept sending me nasty letters saying I was being fined for not doing a tax return. Each year I sent them the same letter telling them I has left and reminding them that I has told them the same thing a year earlier. They eventually got the message.

I used to get this. In the end they filled an appeal on my behalf and accepted the appeal they filled on my behalf and sent me a letter saying they had accepted my appeal.

This was after I gave up even bothering with them.

[wackybacky]

Love inland revenue. Left the UK and every year for four years they kept sending me nasty letters saying I was being fined for not doing a tax return. Each year I sent them the same letter telling them I has left and reminding them that I has told them the same thing a year earlier. They eventually got the message.

You should have de-registered, not just walk away and expect their computer system to know about it.

So really the fault is yours.

[rhythmworx]

They haven't sent me a letter for the money they owe me and yesterday and the time before that I could not even get through on their phone lines. They never answer.

They've sent me a letter to pay Corporation Tax though, even though I don't owe any.

[Jonmarleesco]

Difficult to know which is the most disaster prone government department, the DWP or HMRC. One can't determine who should be doing what; the other, who should be paying what.

And HMRC are likely to be handed unprecedented powers to take from bank accounts monies for taxes that are the subject of dispute.

[samran]

Love inland revenue. Left the UK and every year for four years they kept sending me nasty letters saying I was being fined for not doing a tax return. Each year I sent them the same letter telling them I has left and reminding them that I has told them the same thing a year earlier. They eventually got the message.

You should have de-registered, not just walk away and expect their computer system to know about it.

So really the fault is yours.

Which bit about me writing them 4 times did you not comprehend?