Due to recently discovered errors, HMRC has sent out its first round of approximately 45,000 letters to taxpayers, potentially including umbrella company contractors, informing them that their taxes were wrong. The total number of letters sent out should top 6 million by the end of this year.
The last two income tax years are the ones in question, and could have resulted in people either paying too much or not paying enough towards taxes, though any taxpayer who did both will receive notification of such an event, which would most likely even out in the end.
In a statement regarding the new notices, HMRC tried to allay taxpayer fears by instructing those who face difficulty securing the additional funds to pay off any incorrectly assessed taxes to contact a tax officer to make a payment arrangement.
Chartered accountancy firm HW Fisher & Company’s Tony Bernstein commented on the new tax developments, stating that under no circumstances should taxpayers ignore any letters sent by HMRC, which tends to be aggressive debt chasers.
It is completely possible to negotiate repayment terms with them, Mr Bernstein continued, stressing the need to not panic in the event if anyone cannot immediately afford to repay any additional taxes in full; HMRC has broad discretionary powers to negotiate with individuals in regards to working out a payment plan instead of needing the cash in one lump sum.
Mr Bernstein also counselled taxpayers to compare their payslips against their coding notices in an effort to ensure their employer did not make any errors in regards to coding. He said that studying the PAYE codes is also important by double-checking that taxpayers’ circumstances are reflected properly in their codes. Finally, Mr Bernstein stressed that if a taxpayer does discover any errors or mistakes that they should immediately get in contact with their tax office and bring it to their attention.
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