Sunday, September 12, 2010

Tax isn't taxing....ho, ho!

There's very little solid information coming out as to why some 6 million people have paid the wrong amount of tax over the last few years - most of them paid too much, but a significant number paid too little and will now be asked to cough up the balance. From the little that is being said, it seems that the problem is with the PAYE system and stems from people being given the wrong tax code - but it's far from clear whether this is the result of the Revenue being given incorrect information, or whether it is simply a matter of the Revenue making mistakes. Given that the situation seems to have come to light as a result of a computer audit, rather than from inspectors going round checking up on people, it seems likely that it is the latter. Unfortunately, the Revenue's position is and always has been that the responsibility for ensuring your tax affairs are in order lies with you, and not the Revenue, and therefore even if it's their mistake, it's your responsibility!

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