Consumers may be asked to repay tax after HMRC blunder
Consumers may be asked to repay tax after HMRC blunder
- Wednesday, 8 September 2010About 1.4 million consumers will be receiving a letter from HM Revenues and Customs (HMRC) asking them to repay some money, which could lead to
debt problems.
HMRC has admitted that it has made a blunder through its Pay As You Earn system, which means that six million Brits have been paying the wrong amount of tax for the past two years.
Those who receive a letter stating that they have not paid enough will be expected to repay an average £1,428 before the next tax year and this could lead to
debt problems as it is an unexpected cash burden.
Another 4.3 million are expected to receive letters stating they have overpaid and could get a refund of around £400.
The Low Incomes Tax Reform Group (LITRG) has published a guide for those who have been told they underpaid and it will explain the circumstances in which people can challenge HRMC.
John Andrews, LITRG chairman, said: "Taxpayers receiving tax calculations from HMRC are in need of help - particularly if these show that they owe money to HMRC and they cannot afford to pay for a tax adviser."

Recent Debt Management Plan News
56% of Brits have no life insurance which could leave family with debt problems
Wed, 04 May 2011More than half of UK adults currently have no life insurance cover, which could mean their loved ones are left with
debt problems when they die...
Brits thinking about retirement advised to seek debt advice
Tue, 03 May 2011Consumers considering their retirement options have been advised to seek professional advice, as they may end up with
debt problems in the future...
Brits planning to attend a wedding should start saving to avoid debt problems
Thu, 28 Apr 2011Consumers concerned about getting into
credit card debt to pay to attend a wedding may want to use their savings instead...
Couples planning their big day can avoid debt problems by negotiating a cheap wedding
Wed, 27 Apr 2011Couples-to-be worried about needing
debt advice in the future after paying for a wedding can ensure they avoid accruing
debt problems by negotiating a cheap wedding...