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Great Financial Ideas Newsletter - November 2010

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Dear [FIRSTNAME]

Tax chiefs were hauled to give evidence to the Treasury Select Committee recently and admitted that a staggering 24 million people could have had their tax bills miscalculated over recent years.

The Panorama programme, Are you one of the six million? earlier this week has rekindled interest in this topic.

It’s anticipated that six million people will get letters before Christmas either demanding an average of £1,400 or offering a refund by cheque after a new computer system identified errors in their PAYE accounts.

Apparently there is a backlog of a further 17.9million ‘unresolved’ tax cases dating back to 2005, which HMRC is hoping to process by 2012. Many more people could therefore face demands for underpaid tax.

As a result of ministerial pressure HMRC have agreed that those facing tax demands of £2,000 or more as a result of errors will not be charged interest on the money they owe.

HMRC have stated 'Only those who will not engage with us will be charged interest.'

The Revenue has already agreed to waive bills of £300 or less, meaning 900,000 taxpayers will be spared paying any money back – at a cost of £160million to the Exchequer.

In our experience HMRC are becoming much more intrusive in their Investigations of individuals and businesses so be prepared for more enquiries. Tax Investigation Fee Protection Insurance is becoming more attractive by the minute!

Andy Parker
Chartered Accountant Birmingham


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For advice on all accountancy and financial issues contact Parker Chartered Accountants and Financial Advisors on 0121 704 1354.


Regards

Andy Parker
Parker Chartered Accountants + Financial Advisors

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