Tax Tip

The good news is for about three and a half million taxpayers that will receive a letter informing them that they will receive, on average, £379 each thanks to its annual reconciliation of peoples' PAYE tax codes against their final earnings and tax payments.
However, another 1.6 million people will be told they have underpaid and now have to pay on average £537 each.
Last year, the normal reconciliation exercise saw nearly five million people being told they had either overpaid or underpaid tax in 2010-11.
The reasons for this might be receiving more benefits-in-kind from employers, having more than one job, or a pension, with the personal tax allowance being spread between them, and because some people had moved jobs with gaps in between.
The letters will start going out on 17 May (two months earlier than in previous years), with the last being sent this coming October.
HMRC said that taxpayers did not need to take any action, as most people who owed money would have the repayments taken from their earnings in the next tax year via an adjusted tax code.
 

If you have any questions or concerns about outstanding Tax liabilities, contact ABDS.

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail: abds@netaccountants.net

Great with People  Brilliant with numbers Clear and precise with words