dataplan
Log In
Call 03331 123456
Get A Quote
Log In
Call 03331 123456
Get a Quote

HMRC PAYE fiasco - Estimated £1.6bn in overpaid tax

HMRC PAYE fiasco - Estimated £1.6bn in overpaid tax
Thursday, 19 August 2010 11:28

As reported on a number of occasions HMRC has had significant difficulties in introducing the new system to manage PAYE. However, the scale has only now become apparent via the HMRC 2009-10 accounts.

The report from the Controller and Auditor General that is attached to the annual HMRC accounts estimates that if 18.2m unresolved open cases are taken into account UK employees could be due repayments of £3bn (recoveries due of £1.4bn) from unreconciled cases from 2007-08 and preceding tax years.

The new National Insurance and PAYE Service (NPS) went live in a phased implementation that started in June 2009. This itself was two years' behind schedule. The reasons stated for the delay were to protect the integrity of the PAYE system. However, the delays resulted in a huge backlog of PAYE returns in 2007-08 and 08-09.

Despite the delays to ensure integrity the department discovered that going live with a high volume computer system that wasn't adequately scoped or tested was a sure way to foul things up even more. In 2009/10 PAYE processing errors increased amounting to £132m in underpayments (a 15.7% increase) and £238m in overpayments (a 148% increase).

For a more detailed review of the errors see the AccountingWeb website


Want Super Hero Customer Service?

Get a quote
dataplan

Cookie Information This website uses cookies to help make your browsing experience a better one.

Learn more
I understand

Cookie Policy

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. 

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source.

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, "Lorem ipsum dolor sit amet..", comes from a line in section 1.10.32.

f0d8
Privacy Policy
payroll services