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UK Tax blunders

It didn’t seem that long ago that as tax payers, we were being threatened with letters to say we had not paid enough tax, some people were having to find thousands for HMRC, despite paying tax through the normal avenues of work.

In today’s news HMRC are once again in the firing line for sending millions of letters out to tax payers containing information, that may lead to a tax rebate for many.

So, why have these series of events happened, is it a massive tax blunder? HMRC say is part of their annual “reconciliation”. Most people have tax and national insurance deducted from their monthly pay packets, although there are some cases that need annual reviews such as companies or self employed workers. HMRC look at the payments for tax over the past year, if you’ve paid to little, they’ll be asking you for a payment, if you’ve paid to much, you could be quids in with a rebate.

So how has this little blip happened? HMRC quoted

“Now, we have people moving places, changing jobs and maybe even having two
or three jobs and the old, antiquated computer system was not equipped to deal
with that.

“A person with two or three different employees might have had two or three
different tax offices and it takes time to work out what tax or rebates were
owed.”

If HMRC  invest in a new IT system, problems like this should not occur and calculating tax and keeping track of how much everyone has paid will be a lot simpler.

Now, if you are in a position where you receive a letter and are required to pay more tax, this as we can imagine can put you in a slight predicament. If you are a small or medium company and have a bill to pay but are worried about where to get the money from, the team at Select Factoring have a solution. Using the money tied up in your invoices, you can release the capital with factoring, and have the money to pay your tax bill within 24 hours.

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