Warning HMRC income tax figures are incorrect

clock

Letters sent out by Her Majesty's Revenue and Customs (HMRC) informing people they have paid too little tax could be based on inaccurate figures, an accountancy firm has warned.

HMRC sends out P800 forms to taxpayers it believes have over- or underpaid income tax in earlier years. in 2011, HMRC sent out 1.2 million P800 forms concerning underpayment and around three million concerning overpayment. However, accountancy firm Kingston Smith has warned HMRC's estimates of taxpayers' earnings on these forms often "vary significantly" from their actual income. "When taxpayers receive a letter on official HMRC paper detailing their tax liability, many naturally assume the numbers are correct," said Andrew Shaw, head of personal tax at Kingston Smith. "Our expe...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Trustpilot