Inaccurate Returns Threatening Billions In Tax Revenues

Thu, 26 Mar 2009

Up to £3.7 billion of tax revenue could be at risk because of online errors on self assessment forms, MPs have warned.

A recent report from the House of Commons Public Accounts Committee revealed some 46 per cent of PAYE self assessment returns were submitted online last year, up 29 per cent up on the previous year and significantly exceeding the 35 per cent target for 2008 set by the HRMC .

However, the committee warned that 34 per cent of filed returns were inaccurate, meaning that £2.9 billion to £3.7 billion in revenue is at risk.

The report also warned that only 69 per cent of returns were filed before the 31 January deadline - well below the target of 93 per cent.

Concerns were also raised by the committee regarding a second delay in moving taxpayer records from the existing PAYE system to the National Insurance Recording System.

The move could leave more than 16 million taxpayers unaware that their tax records have outstanding queries, which may result in additional demands for tax or a refund.

MPs on the committee said the delay was "regrettable" but added that HMRC must be 100 per cent sure the new system is working correctly before the making the switch-over.
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