Tax
ACCA calls time on current nature of PAYE |
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| Tax | |
| Written by Gary Howes | |
| Monday, 06 September 2010 | |
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PAYE errors can no longer be trusted say accountants.
The revelation that HMRC has made PAYE miscalculations has prompted ACCA - the Association of Chartered Certified Accountants - to call for the UK tax system to be simplified. ACCA say that HRMC must ensure it is able to deal with the inevitable flood of queries from tax payers who are concerned that they may have to pay up for PAYE mistakes. According to reports up to six million people have paid the wrong amount of tax through the PAYE system over the last two years, with some people facing demands for extra payments of up to £5,000. ACCA's head of taxation Chas Roy-Chowdhury says: “HMRC’s recent announcement is worrying for many ordinary tax payers. While it is important we pay the right amount of tax at the right time, it is also important that our tax authority bills us correctly and keeps correct records. “It is also important that HMRC is geared up to deal with this mistake. I am concerned that they will not have the number of staff available to deal with queries from those who don’t want to use HMRC’s website. This will only add to people’s frustration.” Chas Roy-Chowdhury adds: “This issue highlights the problems caused by the complexity of the UK’s tax system. Only today we also hear that millions of pounds are owed to those who do their own tax returns due to errors in the self assessment system. Self assessment tax payers and employers are clearly having problems with tax codes. I know that many will be asking whether they can trust the UK's tax regime.” While there are not many options available to the taxpayer in this PAYE situation, Chas Roy-Chowdhury recommends that tax payers equip themselves with all the facts if they fear they cannot pay. Mr Roy-Chowdhury says: “HMRC has a ‘time to pay strategy’ in place and tax payers should be aware of it and call HMRC on 0845 302 1435 – this may be listed as the business support helpline, but it is for individuals as much as businesses. All taxpayers should be given a sympathetic hearing.”
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