Why The PAYE System May Hurt You

The PAYE or “pay as you earn” tax system is one that harms a lot of tax payers in the end. This is because the system is only set up to tax those who are working full time traditional jobs. That is great for the many who do work these kind of jobs, but there are a lot of other people who are harmed by this system.

Even worse, many accountants are saying that the system itself has cracks that are showing up more and more. From the telegraph.co.uk website:

Accountants say individuals and companies are having difficulty accessing HMRC records. Others report erroneous information finding its way into workers’ tax codes. This could lead to the wrong tax being paid and future sums being owed – in either direction.

What a headache that is! You could either be paying more than you are supposed to be paying or less. This means that the taxman could come back later and say that you owe even more than what you already paid in. That is frustrating and a primary reason why many people are turning against the PAYE system. They are saying that it is not even close to fair.

If the accountants are having trouble with the PAYE system, then how are the rest of us supposed to understand it? That is a very fair question and one that the government has yet to answer.

It is important to get professionals to help you with your tax returns. You may well be owed money in your favor as a result of the PAYE system. If that is the case, then there is no reason to allow the government to keep your hard earned money. Get professionals and get the money back.

Contact us about helping you get back your hard earned money.


Photo by Olga Serjantu on Unsplash

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