The Association of Tax Technicians (ATT) has warned that there is an urgent need for a review of HM Revenue and Customs’ (HMRCs’) Real Time Information (RTI) reporting system, as it may not be fit for purpose.
This call came after a leaked email stated that end of year tax reconciliations for thousands of taxpayers may have been recalculated wrongly, according to a recent report in The Telegraph.
In an email leaked to the newspaper, a group of senior HMRC staff and accountants were told “thousands” of mistakes were made. However, an HMRC spokesperson said the incorrect letters were “not demands” but merely tax summaries, adding that the majority of errors occurred because an employer had failed to make a final payment statement for the 2013/14 tax year. This meant that the records were incomplete, despite reminders that these submissions had to be made.
HMRC has advised that employers and their agents refrain from sending any 2013/14 earlier year updates unless requested to do so by HMRC. Also, if an employee asks about a 2013/14 P800 which they think is incorrect, they should:
- Not repay any underpayment shown on the P800
- Not cash any payable order they may have received
Employees will not be affected by the incorrect tax code as HMRC will issue a revised P800 before Annual Coding.
We are here to offer advice if you have been affected by this error.