Revenue collected £238m too much
A new system at HM Revenue & Customs designed to bring more accuracy to tax payment processing appears to have backfired, having collected £238million too much.
Accountants at UHY Hacker Young, which used freedom of information rules to uncover the figure, said the overpayment related to PAYE errors in the 2009-10 tax year.
In the previous year, before the new system went live, the amount of PAYE tax over-collected in error was £96million, indicating the sum has grown 148% over the last 12 months.
This is "unacceptable", said UHY Hacker Young's tax manager Rob Durrant-Walker, although he did acknowledge that the system should result in more accurate codes eventually.
A spokesman for HMRC responded by saying it was partly thanks to the new system that inaccuracies could be corrected, but said overpayments had "long been a feature" of the PAYE regime.