Last year 4.3 million UK tax payers received tax rebates for over payment of tax and 1.4 million people had paid too little.
Last year’s unpaid tax totalled around £1,400 and 900,000 tax underpayments, averaging £300 each, were disregarded by HM Revenue and Customs without repayment.
HMRC’s new computer system has discovered errors this year that mean over six million honest UK tax payers are to receive a tax rebate from the Revenue.
It is thought that each person affected has over-paid HM Revenue and Customs by an average of £400 tax each.
The unfortunate 1.2 million tax payers that are to be told they have under-paid their tax, are expected to pay back £500 – £600 each to HMRC.
Those who have under-paid their tax and owe money to HMRC will be given the opportunity to pay the tax back in stages.
Commenting on HMRC’s income tax discrepancies, a spokesman for the Revenue, said:
“Money that is owed going back many years is now going to be automatically paid back as we get the tax system up to scratch.
“We are getting cases that were left unreconciled up to date as quickly as possible.”
HMRC’s management of the UK income tax system has come under recent scrutiny by the HOC Public Accounts Committee for causing ‘unacceptable uncertainty and inconvenience.’
According to HMRC:
“The fact is there will always be some cases at the end of every tax year that require an under or overpayment to balance but these cases will reduce as the new system beds in,” the spokesman added.
Letters will be sent out over the next few months to tax payers due a tax rebate.
The tax rebates may date back to over-paid taxes from the 2007-2008 tax year and payments made will be inclusive of interest.
HMRC hope to have completed all tax rebate payments by December 2012.
Kevin Kinsella Jnr, of KinsellaTax, said:
“I saw this this morning, 20 October 2011, on BBC breakfast. I am sure there is going to be further comments over the next few days.”
If your income tax returns are under self assessment enquiry by HMRC you should always seek professional advice from a HMRC tax enquiry expert.
KinsellaTax staff consists of ex-HM Inspector of Taxes and ex-HM Custom and Excise Officers, fully experienced in HMRC investigations.
Put your mind at rest once and for all and speak to one of our tax enquiry experts today on 0800 471 4546 or click here to fill in an online tax enquiry form.