Tax Rebates & Refunds

Taxpayers still turning a blind eye towards tax codes in spite of system errors

March 29, 2011
Posted in Income Tax — Written by Jennifer

It has been noted by the HMRC that the majority of the population in Northern Ireland are turning a blind eye towards their tax codes.

A spokesperson for the HMRC mentioned the fact that about 47% of the Northern Irish population have not cross checked their tax codes, even after the much publicised error in the system during the last financial year.

A detailed research of the system revealed that people were either paying too much or too little tax. An independent survey carried out by the ACCA (Association of Chartered Certified Accountants) also revealed that three out of five adults in Northern Ireland are unsure of their tax codes.

An independent nationwide poll revealed the widespread confusion among the Irish population. Around 89% of the population was unable to identify the tax levels paid on salaries of £20,001, £50,001 and £200,001.

A system error in 2010 resulted in the HMRC sending out tax rebates and underpaid tax bills to millions of taxpayers. It was also reported that while the tens of thousands of taxpayers were sent the wrong tax code, many errors in the system dated back to the 2007/2008 fiscal year. This was after the introduction of the new tax code system. The HMRC has since been advising taxpayers to cross check their tax codes in an effort to minimise errors.

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