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5.2million pay wrong tax

25.06.14

Around three-and-a-half-million workers will have to pay extra tax due to underpayments according to HMRC.

Despite around £300m being invested into reforms aimed at reducing these errors, 5.3million people paid the wrong amount of tax for the 2013-14 tax year – 1.8million will be due rebates. HMRC has begun writing to the 5.3million affected, explaining that they have paid the wrong amount of tax.

The matter of paying the right amount of tax doesn't seem to have improved much over the past year, despite the government spending £270m on the 'Real Time Information' (RTI) programme for PAYE tax payers.

"RTI was supposed to make PAYE more accurate, not less. So why are there more [errors] this year, with RTI in full flow, than last year, when RTI was only a pilot? The number of PAYE differences has risen, not fallen. Something in RTI is not working," David Heaton of Baker Tilly told The Daily Telegraph.

Kate Upcraft, a payroll consultant, added: "Taxpayers have spent hundreds of millions on RTI and employers have had to spend hundreds of millions to use the new system, so we are entitled to expect significantly fewer errors in the reconciliation process."

One of the main benefits of using Consort's services is the ability to be paid gross as a sole trader, rather than using the less beneficial PAYE system. This means by using Consort, you don't have to worry about RTI. Become part of the Consort team and pay your tax annually with the ability of offsetting any work-related costs against your gross earnings. Click here to register.

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