Saturday, September 4, 2010

Six million people in UK have overpaid or underpaid tax

Six million people in UK have overpaid or underpaid tax

Nearly six million people in the UK have paid the wrong amount of tax.

About £2bn was underpaid via the Pay as You Earn (PAYE) system in the past two years, with about 1.4 million people owing an average of £1,500 each.

But £1.8bn has also been overpaid and some 4.3 million people will get a rebate because they have paid too much.

Treasury minister David Gauke said that in the current financial climate, the government was not in a position to "just wave goodbye" to the money owed.

He said the government had inherited the problem and the PAYE system - which was created in the 1940s - was struggling to cope with modern working patterns.