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Over five million tax miscalculations made

The taxman has revealed numbers showing that somewhere within the region of 5.5m tax payers have paid an incorrect figure, with many now having to make additional payments.

Approximately 3.5m failed to pay enough tax through PAYE for 2013/14, which means they will need to make up the correct figure. That is in spite of the benefit of RTI (Real-Time PAYE). Two million managed to overpay, but will be able to make a claim from HMRC.

HMRC’s 2013/14 estimation of 5.5m errors is 300,000 more than last year. RTI’s long-term plan is to reduce reconciliation, but it hasn’t had as much influence as first hoped. HMRC has said, however, that there is a £50 drop in the average figure for overpayment and underpayment when compared to 2012/13.

An HMRC spokesman said:

“There will always be end-of-year reconciliation due to the way PAYE works. Most people pay the right tax throughout the year, but there will always be a small percentage of the 41 million people in PAYE who have underpayments or overpayments at year end.”

The effects of incorrect tax calculations can cause a lot of time and money to be tied up, which in turn has a negative influence on the day-to-day running of a business. That is why SMEs hire accountants to take care of the numbers for them. This only highlights the necessity for having an accountant in the Wirral, Chester, or wherever the business may be located, ensuring those numbers are submitted accurately.

Posted by Mark
July 3, 2014
Tax

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