Sunday, 12 September 2010

victims of tax blunder

Ken Mawdesley, assistant tax director at Preston-based accountants Tenon, 

said around one in four local people could have to wait up to four years before 

they receive a rebate of tax.

What we have got is a cut-price civil service and that results in a cut price 

service for people.

Thousands of tax code blunder victims to discover fate today
Many of the nearly six million people who paid too much 

or too little income tax will find out today whether they 

are due a rebate or have to make additional payments.

Around 5.7 million people have paid the wrong amount


 of tax through the Pay As You Earn (PAYE) system 

because of an HM Revenue & Customs (HMRC) blunder.

Huge numbers of taxpayers are being sent the wrong tax codes for the next 

financial year, which starts in April. 2011


This is an updated guide for the tax year starting 6 April 2010 to be used in 

conjunction with the Income Tax Checker tool.


Tax chaos: How to fight taxman's demands

Chaos has been growing in the tax system for months...taxpayers are being urged to

fight back... you have overpaid or underpaid income tax to HMRC  how fight the tax

demands for more of your money.

Who is affected?

How will I know if this includes me?   


Can I fight it?                           Taxman: We must 'improve accuracy'

TaxPayers' Alliance, led calls for reform, arguing that the tax system should be 'simplified so that ordinary people aren't the victims of mistakes like this again'.


The first 45,000 letters from HMRC are expected to arrive on doormats on Tuesday. Millions more letters will go out by Christmas. Not all recipients will be disappointed, with 4.3m people due to receive an average rebate of £418 each.
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how to deal with the letters and how to submit an A19 concession

Low Incomes Tax Reform Group will publish information on its website (www.litrg.org.uk) about how to deal with the letters and how to submit an A19 concession

The Low Incomes Tax Reform Group (LITRG) is the result of the Chartered Institute of Taxation to give a exposure ,so that taxpayers can handle and say what is reason able and who do not usually to pay for tax advice.

LITRG is all for bringing HMRC to account when it has let down the low income population; but we are also clear that we want good and accurate information to be provided to those same people.

The millions of tax calculations which will probably be sent out later this year are a result of the new computer system doing its job properly, not through some big mistake.

The mistake on launch of the collection/repayment exercise has been in not preparing the ground properly for the ‘customers’ of HMRC or taking into account adequately the impact upon low income families.

PAYE is a good system and people should be careful what alternatives they might wish for. The new government is looking imaginatively at how it can be improved in the future and all power to their elbow in that endeavour.

Until any more advanced concept is adopted, the new computer system will improve the PAYE situation in the next few years. It should be more accurate and it will deliver repayments quicker. It is a shame it was not introduced on time three years ago as planned

Extra-statutory concession A19

A19 has been subject to much misleading news coverage.