The Tax Debacle

[taxman]

I find it funny how people want the person to aplogise for doing his job

 

I'd sack Sir Paul Chambers who devised the PAYE system back in 1944. It's terrible how he's not even bothered to apologise.

 

 

For people struggling with how PAYE works here is a very brief overview.

 

You might find this sentence particularly enlightening

 

"In the UK the amount of tax withheld from wages and salaries is determined partly by the employee's expected tax allowances, exemptions and reliefs for the full tax year, and partly by the employee's expected other income. The employee's expected allowances, reliefs and other income are translated by HM Revenue and Customs (HMRC) into a "tax code". Published tables apply the tax code to determine the amount of tax to be deducted from the salary or wage paid to the employee. It is the employee's responsibility to inform HMRC of changes which will affect his or her allowances and reliefs and other income in the tax year.The employer is responsible for sending the tax on to HMRC."

[iansheff]

What amazes me is the talk of interest on the money, how can they even consider penalising people for something they were not responsible for. Will they give interest on the money that is being paid to people who are getting a refund?

[strangeart]

I have read given with some dismay the answers given by Taxman.

 

1st, can your tell me why you have a German Shephard as your introductory photo. This is a breed I am very fond of. Of course they were once used by the Nazi to round up the Jews. Please do the breed a favour and take it off. They have enough bad press being as without being associated with the tax office.

 

 

2nd. This thread was originally started due to the way losses and lack of apology are being handled from on high. I doubt the newpapers were wrong in reporting an arrogant man who cannot be bothered to address the public in a proper mannor and admit responsibility where due.

[Obelix]

it is for those already struggling and will get a £2000 bill to pay just before christmas

 

Like it is every year when people fail to understand how PAYE works and their obligations under it.

 

As I said - a none story.

[dawny1970]

so they are going to charge interest on those that underpaid tax, are they applying the same rules for those who paid to much tax as well??, doubt it somehow

[matsalleh]

errrrrrrrrm i think your in the wrong thread dude this ones about tax, the slavery threads that way ----------------->

 

Read the OP.

[truman]

Under and over payments happen every single year. That is how the PAYE system works, it issues a code at the start of the year then reconciles a persons earnings with how much tax they've paid at the end of the year. If a persons circumstances have changed over the year then there may well be an under or overpayment.

 

It has been highlighted this year solely because the reconciliation is being done by a computer rather than manually. Therefore millions of letters are being sent out in a shorter period of time and therefore it has made the news.

 

Any under or overpayments of less than £300 will be ignored.

 

Now, perhaps you'd like to suggest a better method of calculating and collecting peoples' taxes rather than PAYE?

 

As I understand it some of the money being clawed back relates to the tax year 2008-9..if this is the case then the adjustments weren't made correctly for that year.....

[e5c4p3]

 

Now, perhaps you'd like to suggest a better method of calculating and collecting peoples' taxes rather than PAYE?

 

Surely the head of HMRC would be the best person to do that.

 

But after over 60 years that would appear not to be the case.

[Alex C.]

I believe there are proposals to introduce real time tax payments where everything is done electronically and kept up to date. That should completely stop this under/overpayment issue. Eventually HMRC want employers to pay them a gross wage, they carry out deductions and then pay the net wage on to employees - that would certainly stop any under/overpayment (but it's still not something I'd like).

 

I'm not really sure why you would expect an apology for something that happens every year. The only reason it has made headlines this year is because a computer is carrying out end of year reconciliation, instead of people.

[truman]

I believe there are proposals to introduce real time tax payments where everything is done electronically and kept up to date. That should completely stop this under/overpayment issue. Eventually HMRC want employers to pay them a gross wage, they carry out deductions and then pay the net wage on to employees - that would certainly stop any under/overpayment (but it's still not something I'd like).

 

I'm not really sure why you would expect an apology for something that happens every year. The only reason it has made headlines this year is because a computer is carrying out end of year reconciliation, instead of people.

 

If this is done every year then how come the tax year 2008-9 is being cited in this....?