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|Help with PAYE underpayments in 2007/08|
LITRG issue further help for up to 450,000 taxpayers receiving calculations of tax underpaid for 2007/08, urging people to check and challenge them.
It was announced last week that shortly HMRC would start issuing P800 tax calculations to PAYE taxpayers whose records show they have not paid the right tax for the 2007/08 tax year.
Whilst the calculations for some will show they have paid too much tax, an estimated 450,000 will be told they have not paid enough and will be asked to repay over £300 for 2007/08. This follows HMRC calculations already issued for 2008/09 and 2009/10.
A question of fairness
LITRG consider this action by HMRC as very unfair for the following reasons:
Fortunately, there is a range of ways to challenge the latest demands.
LITRG have now set out our recommended approach if you receive a PAYE tax calculation ‘P800’ showing you have not paid enough for the 2007/08 tax year.
Much of our existing guidance for 2008/09 and 2009/10 also applies to 2007/08, but there are extra considerations. Importantly:
We therefore urge you to argue your case. To help you, we have provided on the LITRG website:
About The AuthorThe Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation to give a voice to those who cannot afford to pay for tax advice. LITRG comprises tax specialists from professional practice and the voluntary sector, from publishing and from HM Revenue & Customs, together with people from a welfare benefits and social policy background. Visit www.litrg.org.uk for further information.
Article Added Tuesday, 18 January 2011 | 2084 Hits