Public will be alarmed at tax 'error'
THE Inland Revenue has never been a popular medium and it will be even less in favour with some of the British public after confirmation of a massive tax blunder which could see a million and a half citizens re-paying a sum totalling £2billion.
The major revenue blip has come as a result of under-payments over the past two years from a malfunction in the Pay As You Earn (PAYE) system.
And understandably in the current financial circumstances, the government is not in a position to write off the amounts, even though it is entirely the fault of its own computerised tax recovery apparatus.
Over the same period, a further 4.3 million PAYE staff overpaid taxes of 1.8billion, so the shortfall to the Exchequer is 200million.
Treasury minister David Gauke confirms the government's unwillingness to relent on its demands, but the public will be alarmed by this latest shortcoming in official technology which will leave ordinary citizens picking up the bill.
Many low-income families could be hit by bills as high as 1,500 and, even though repayment may be staggered over a lengthy period, the effects will still be very negative for citizens, both young and old, trying to make ends meet in the current climate.
Those in receipt of the expected revenue bills may try to argue their case that the tax codes applied in individual cases were as a result of "official error" and should not be passed on, but they are likely to struggle to convince HMRC.
Given the scrutiny being applied to public money, this latest saga does not instil confidence in the people in charge of the country's finances.
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Thursday 24 May 2012
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