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.

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