tax letter

PAYE Errors: Not for Employers to Fix

Small-business owners are not responsible for resolving the tax problems that found six million taxpayers paying the wrong amount, the Association of Chartered Certified Accountants (ACCA) has said. HM Revenue & Customs is sending out letters to 4.3 million people saying that they have paid too much tax after a new computer system calculated the wrong PAYE codes. Simultaneously, it is trying to recoup £2 billion from 1.4 million people who were undercharged. ACCA head of taxation, Chas Roy-Chowdhury, said: "It’s not the employer’s responsibility to correct this. Employers will need to implement the new coding notice which they will receive once a code has been agreed by HMRC and the employee concerned, but other than that they have no obligations." "It’... »