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ACCA not surprised by recent PAYE glitch

ACCA not surprised by recent PAYE glitch

While there was no surprise on the part of the Association of Certified Chartered Accountants when HM Revenue and Customs announced yet another taxation blunder, they did add that HMRC had an insufficient number of staff to handle the invevitable influx queries resulting from it.

HMRC recently made an announcement that there were millions in taxes underpaid to them due to a glitch in their PAYE system, resulting in a massive posting of letters demanding repayment. The silver lining is that some taxpayers had actually overpaid due to the glitch and will be receiving a rebate.

The same PAYE system that caused these latest tax miscalculations was also responsible for another glitch earlier in the year: as reported by Independent Contractor Services, HMRC had sent out incorrect tax codes in the thousands, resulting in a large number of taxpayers to receive more than two differing codes, which put them at risk of overpaying through PAYE.

UK contractors are already of the opinion that the British tax system is needlessly confusing and complicated, resulting in the UK earning a reputation for possessing one of the most complex tax systems on a global scale and possibly justifying the creation of the new Office of Tax Simplification by the government said Chas Roy-Chowdhury, taxation head for the accountancy body.

Mr Roy-Chowdhury stated that the issue highlighted the problems caused by the complications of the tax system in the UK. He said that there will be quite a few employers and taxpayers are now distrustful of the country’s tax regime since there have been so many who have encountered problems with the tax codes.

For those have been affected by the PAYE error, the HMRC has instituted a repayment strategy that can be assessed by calling 0845 302 1435; the strategy can be utilised by businesses, including contractor accountants, as well as individual taxpayers.

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Image: Longleat Hedge Maze by Cyberslayer

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