Problems with PAYE persist
Almost six million people in the UK have paid the wrong amount of tax, according to the government.
Just under £2bn was underpaid via the Pay as You Earn (PAYE) system in the past two years, with about 1.4 million people owing an average of £1,500 each. However, £1.8bn has also been overpaid and 4.3 million people will get a rebate because they have paid too much.
Just under £2bn was underpaid via the Pay as You Earn (PAYE) system in the past two years
Treasury minister David Gauke said the government had inherited the problem and the PAYE system - which was created in the 1940s - was struggling to cope with modern working patterns.
Mr Gauke warned that in the current financial climate the government was not in a position to “just wave goodbye” to the money owed.
Millions of letters will be sent to taxpayers across the UK informing them of errors in their contributions. The first 45,000 are expected to arrive on Tuesday, with 30,000 informing recipients they are due a rebate of on average £418.
The remaining 15,000 letters will tell taxpayers they have underpaid and will have their tax code altered next year to recoup the money.
