The PAYE mess

Reconciliation of HMRC’s PAYE records has revealed that about 1.45 million people have underpaid and another 4.3 million have overpaid PAYE taxes during 2008-09 and 200-10. The resultant repayments are likely to be about £ 400 to each of the 4.3 million people together with £2 billion worth of tax recoveries from those underpaid. However, as a concession HMRC officials have now told MPs that taxpayers who have underpaid PAYE tax of more than £2000 wishing to discuss the circumstances with HMRC would not be charged late payment interest!