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1.2m face shock demand to repay £600 underpaid income tax
06/12/2011
The Daily Mail has revealed details of a tax error which has affected around seven million people, six million of which will receive tax rebates averaging £400 each but a further 1.2million, including more than 150,000 pensioners, will be told they did not pay enough, owing on average, £600 each.
The 1.2 million will be invited either to make an immediate payment or have their tax codes adjusted so that the money is paid back gradually, with underpayments dating back more than two years expected to have to be written off.
People affected have generally changed jobs throughout the tax year and as a result have been allocated an incorrect tax code. Also individuals who have multiple jobs or pensions. In the past, debts of £300 or less have been written off. However this year underpayments as little as £50 will be collected.
Any amount of overpaid tax, however small, will be refunded including interest. Homeowners aged over 55 years who are worried about their underpaid tax and would like to know how much money the value of their property could release to increase their income, can find out by contacting therightequityrelease.co.uk for equity release advice.
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