New tax error hits UK citizens


Over a million UK citizens are facing shock bills for hundreds of pounds following a new HMRC error.

It is believed that a number of the affected are new pensioners who have only just begun to draw their pension.

The latest error has surfaced after HMRC made their annual examination of PAYE records, and duly discovered that around five million people did not pay the correct amount of tax in the 2010-11 tax year.

All though this year’s examination found fewer mistakes than previous years, HMRC may also take a harsher stance than previous years. Last year, HMRC did not to chase up unpaid amounts lower than £300. However, this year, they insist they will demand all sums that amount to £50 or higher.

Accountant Mike Warburton revealed the error, speaking to The Telegraph he said: “I have a particular concern about pensioners, not simply because many would find it difficult to pay the tax, but because they are often caught with underpayments. When they start to draw the basic state pension, many continue to have their full personal allowances attributed by mistake against other sources. It is therefore quite easy to run up an underpayment of more than £1,000 a year.”