HMRC has defended the PAYE system after press reports indicated that between four and ten million people could be in line for a repayment while at least 1.4 million face demands for unpaid tax.
The Financial Times reported on 4 September that 30 000 workers could expect a cheque at the weekend the average repayment being around £390. But about 15 000 PAYE taxpayers would be told they had underpaid. The average underpayment was £1 300.
Those refunds were the result of a ‘first tranche’ of data analysis conducted by the new National Insurance and PAYE Service (NPS). The full database of 40 million workers was expected to be reviewed by the end of 2010.
‘Based on a random sample of tax accounts the Revenue estimates that 1.45 million people have underpaid tax under PAYE while 4.3 million have overpaid. The exercise is expected to be broadly...
