In what is seen as a major blunder on part of the HMRC six million Britons could be affected by a computer error by HM Revenue and Customs
. This error has miscalculated the amount workers owe in taxes in the last 12 months making them pay more than what is due. It has taken a lot of time for the concerned authorities to realise this mistake.
Around 1.5 million employees will be forced to pay an average of 1,400 in tax after PAYE contributions were incorrectly calculated over the past two years. People who are deemed to have paid an incorrect amount of tax will receive a P800 Tax Calculation form from HMRC. People receiving taxable benefits from an employer, such as a car or health insurance, may also fall foul of the PAYEsystem.
Paul Aplin, the chairman of the tax technical committee at the Institute of Chartered Accountants in England and Wales, advised taxpayers to carefully look at any letters sent to them by the HMRC. He claims those affected could still avoid paying the requested funds if they can show that they provided the information needed to correctly calculate their tax and this data was not used within 12 months.
Mr Alplin told the Guardian: "You could use a concession to get them to write off some or all of the tax." Many workers have paid up whatever is due to them with fear of falling out of the system. Some workers association are demanding that the error be rectified as early as possible to provide some relief to the workers.
Some financial analysts are saying that HMRC can agree to give up collecting an underpayment if taxpayers themselves had the right information to calculate tax deductions and did not use it when they should have done.