If you’re paid via PAYE (Pay As You Earn) then you’ll want to read about the changes that HMRC have just put in place for the tax year ahead.
HM Revenue & Customs (HMRC) will be updating the way it collected income tax via PAYE due to the shortcomings in the system that have resulted in 8 million tax payers paying the wrong amount of tax every single year.
HMRC said, “the current system doesn’t always work for customers whose circumstances change during the year.” This has resulted in approximately 5.5 million taxpayers overpaying tax every year – with over 50% of these tax payers earning less than £15,000 per year – according to the governing body.
Read more about PAYE Tax Rebates
How to claim back overpaid PAYE
HM Revenue & Customs added that the current system in place means that it can take up to two years for an individual’s account to balance after an underpayment or overpayment of tax has occurred, meaning you could be missing out on valuable, hard earned money.
According to HMRC most tax payers will not notice an immediate change as they overhaul the system, but that they will endeavour to help spot any overpayments on monthly bills sooner, and for those filing annual tax returns, they will be able to pay the correct amount of tax from the moment their circumstances may change.
For most PAYE workers it is often the case that you have overpaid tax, so find out if you’re owed a tax return by applying here or contact us directly at info@taxback.co.uk