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Why Are Millions Owed In Tax Repayments?



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By : Peter Jones    4 or more times read
Submitted 2010-08-27 00:08:59

Why is it that there are so many tax payers who are due a tax reclaim from the Inland Revenue?

Some accountants believe that it is that the Government wish to hang on to taxpayers hard earned cash as long as possible. I doubt that very much. I am sure that they are unable to correctly assess the tax in the first place and then again it just takes them for ever to make a refund.

I telephoned the paye tax help line last week and the recorded message advises that refunds are taking an average of about a month to process.

It is said that one of the reasons for the delay is the extra checks on security that have been brought in before they actually make the repayment.

One point that I find of great concern is that when on the telephone you hang on for an eternity. Clearly the service is just not satisfactory.

Then when you keep hanging on the phone they give you the very many options and after you have made your choice and waited for a while you are then advised that they are receiving very high call volumes and then they simply hang up. Just imagine any business in the real world that did that. I do not think they would last very long.

The amounts of money involved are vast. It was revealed by the National Audit Office (NAO) in July 2010 that there are some 18 million outstanding tax cases involving some 15.4 million tax payers.

It is believed that about half of those cases are thought to be where repayments are due to tax payers who could be owed some 3billion.

There is considerable annoyance about the number of phone calls that go unanswered.

It has been estimated
that some 44 million calls are not answered every year.

The latest figures from the NAO show
that about one third of phone calls are answered during peak times. Callers are in fact charged whilst they hang on.

Simple
mistakes made by Revenue officials cause serious headaches for taxpayers every year.

Quite often they incorrectly issue tax codes which
contain mistakes resulting in excessive tax being paid.

Recently I have seen gross errors where they have allocated people to different companies simply by being unable to properly enter their own employers reference number correctly. You would think that they would have some fool proof system of checking for this kind of elementary error. It's not as if they are trying to land a man on the moon!

Some of the reasons why people are due a paye reclaim is that they may leave their job part way through a tax year and have not had the full benefit of a years free pay allowance.

Another reason may be that taxable benefits such as car or medical are no longer provided but still remain a restriction in the tax coding.


Author Resource: The Author writes many articles on Income Tax and for more information please go to Paye Refund
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