HMRC’s software glitch overchargers taxpayers

Accountants warn people that they may be paying too much tax, if they fall into certain income brackets, because of HMRC’s online self-assessment tax calculator being faulty.

With HMRC’s tax systems being forever criticised, for being too complicated and confusing, legal changes have left HMRC struggling with their online systems.

It has been found that those that earn less than £16,000 a year and exceed the personal saving allowance, and those who have a total taxable income between £27,000 and £32,000 a year, who also receive enough income in the form of dividends to take them over the additional rate tax threshold of £15,000, are both being overcharged if they file their tax returns online.

Software performance concerns

“The UK’s personal tax system has become littered with numerous thresholds, allowances and reliefs, most of which have been politically driven without any consideration given to the adding complexity,” says Nimesh Shah, a partner at accountancy firm, Blick Rothenberg.

“It has got to the point where the government and HMRC are not far from a complete re-write of the tax code.”

HMRC openly admitted that their online systems can’t cope with the two groups, and recommends both financial groups to file paper returns, instead of online.

“A very small percentage of self-assessment taxpayers, who have an unusual combination of income types, currently have to use paper tax returns. We are constantly improving our online services to make them more comprehensive and user friendly,” says a HMRC spokesman.

 

Edited from sources by Leah Alger
The Scotsman

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