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PAYE underpayments: interest concession

Taxpayers who have PAYE underpayments of more than £2 000 and contact HMRC to discuss their circumstances will not be charged interest on late payment HMRC officials have told MPs.

The concession was revealed as the Commons Treasury Committee questioned HMRC’s recent handling of PAYE over and underpayments.

An HMRC spokeswoman told Tax Journal after the meeting that ministers and HMRC wanted to ‘resolve the issue as simply and easily as possible for our customers’.

Lesley Strathie HMRC’s Chief Executive and Bernadette Kenny Director General Personal Tax gave evidence to the Committee today alongside Dave Hartnett Permanent Secretary for Tax.

Reconciliation of PAYE records for 2008/09 and 2009/10 has shown that around 1.45 million people have underpaid tax while 4.3 million have overpaid. HMRC has sent 45 000 letters to taxpayers in a ‘controlled pilot’ exercise.

Strathie was not able to tell MPs during...

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