Contact Us

A new report from HM Revenue & Customs (HMRC) has found that up to 3.5 million taxpayers unwittingly paid too much tax during the 2012-13 tax period.
 
Those found to have overpaid after filing their self-assessment tax returns will be refunded an average of £350-£500, according to HMRC.
 
However, the news is not all good for taxpayers, with two million others expected to be informed they have paid too little tax, owing a further £400-£500 on average through PAYE.
 
Each year, HMRC reviews the amount of tax and national insurance deducted by employers, ensuring it matches the information on its records. This end-of-year "reconciliation process" began this week and is likely to continue through to the autumn.
 
Although up to 5.5 million taxpayers have paid too much or too little in 2012-13, HMRC argues the vast majority who pay through PAYE are correctly taxed, but it is unable to account for changes in personal circumstances, such as new jobs, additional sources of income and amendments to employee benefits.
 
An HMRC spokesman said: "Around 85% of pay as you earn taxpayers pay the right tax throughout the year ... This is the normal process that the PAYE system has used for 70 years."
 
Taxpayers who have paid too much tax will receive a “payable order” which should start arriving from June onwards.
 
The majority of taxpayers who have inadvertently underpaid through PAYE for 2012-13 are unlikely to get a bill – instead their tax code will be amended, with the amount owed paid back via deductions from salary during the 2014-15 tax year.
 
Note: HMRC has reiterated it is sympathetic to cases of genuine hardship. Taxpayers unable to pay what they owe may be able to repay their fees over the next two or three years.

Date published 17 May 2013 | Last updated 17 May 2013

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free consultation

020 3941 2011

Or contact us