Tax calculations issued to taxpayers incorrectly are causing a massive backlog of correspondence. Up to 13 weeks of customer letters remain on hand, leaving taxpayers to deal with incorrect tax codes and calculations of underpaid tax.
An initial amount of 45,000 tax calculations were issued to taxpayers, either informing of a repayment of tax due to the taxpayer, or demanding tax which has been underpaid. Many calculations are incorrect leaving taxpayers trying to contact HMRC in an attempt to correct the situation. The telephone help lines are constantly busy which leaves taxpayers with the option of writing in to the tax office.
Many taxpayers who previously had the option of completing a self assessment return have now been taken out of the self assessment system and put back into Pay As You Earn. The new system has proved that it cannot cope with extra sources of higher rate income, leaving the tax affairs of many high earners in disarray. For many higher rate taxpayers, it is advisable to employ cheap accountants to calculate their tax liability and check that the current year’s tax codes are accurate.
The new system can cope well with the seemingly simple affairs of taxpayers with only one source of income. However, as many people now have multiple income sources from employment, pensions and benefit’s the system is struggling to cope.
Taxpayers who receive a tax calculation showing an underpayment of tax for previous tax years are advised to seek the help of low cost accountants who can calculate tax liability for the years concerned, approaching the tax office on your behalf.
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