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.

Printer Friendly, PDF & Email

Sign up to our Weekly Newsletter

Keep up to date with everything in the world of contracting.


Contractor's Question

If you have a question about contracting please feel free to ask us!

Ask a question