When will HMRC finally correct the tax payment system?

The “new and modernized” tax system of HMRC is not yet professional and cost millions people problems again.

Only few months after HMRC revealed that millions of people have been paying the wrong amount of tax, due to a ‘computer error’, the system has made another huge and billions costing mistake.

According to news from the last days, HMRC failed to credit millions of employees with nearly £1.3bn; they have paid in NI (National Insurance) between 2004 and 2009. This fact will affect those people when they decide to retire. Suddenly they will be prevented from claiming a full state pension.
This “error” is coming after the fact that 10 million people have to receive tax refunds by the HMRC, because of errors in the tax system.
Tax refunds have to be done to more than 10 million people, because of system errors in the tax proceeding in HMRC tax code system, last September.

It was confirmed already by the officials, that 4.3 million people are due receive a rebate of their taxes, overpaid in the last two years. There is a huge possibility that over 5.8million people to have overpaid their income taxes before March 2008 too, so they will expect tax refunds as well. But this was not yet confirmed by the officials.

Daily telegraph announced in the past months, that almost £5bn is the sum of the overpaid taxes. Only for the past two years the sum is £1.8bn. The cases of overpayment before March 2008 are about 18.2 millions. And this is only from code errors in the tax system. Is those people right to ask- when the system will no more make such mistakes?

According to Daily Telegraph some of these payments are set to happen in the next four years. The Treasury has notified the affected near 6 millions of people, paid the wrong taxes in the past two years. There is high possibility to be discovered other 7.7million people with errors in the tax payments.

HM Revenue and Customs (HMRC) computer system was upgraded recently, and exactly the new system identified the errors in the PAYE (pay as you earn) tax system. The wrong calculations of the old tax system cost an average £1,400 for nearly 1.4 million people. These people will retrieve the money next year. Millions of employers underpaid taxes in the past two years at a total amount of £2bn.
Identified by the “upgraded” system will be also employees, which have been moved jobs or accepted cash benefits or company cars from their employers.

4.3 millions of people are set to receive a tax refunds, because they have paid too much taxes in the past two years. These people are expected to receive an average tax refund of £418.

If you wonder do you have wrong payments in the past years, you can try to find out in the complicated system of HMRC, or to contact professional international tax refunding company and ask for advise and help. ETS Tax Refunds is at your services.

There is no perfect systems, but when someone`s paying his taxes he expects not to pay wrong taxes, just for computer errors.