Millions to have their tax bills written off


HM Revenue & Customs (HRMC) has decided to write off the tax bills of almost two million people, with the amount of unpaid tax estimated by some at £500million, though other experts predict it will be significantly lower, at around £30million, due to the number of small debts of £50 or less.

The bills that will be written off relate to the 2006/2007 tax year, and come from the Pay-as-you-earn (PAYE) tax system which deducts income tax and National Insurance contributions from salaries. The inland revenue only has 4 years to collect past debts and so the deadline to collect outstanding tax payments related to 2006/2007 will soon arrive. As such, the 1.9 million "open cases" relating to that period, were details have not yet been checked, will simply be allowed to expire so that HMRC can focus more on resolving discrepancies involving tax-payers in subsequent years.

HMRC will not be writing out to tax-payers to advise them if they are among the 1.9million people affected. Anyone concerned to know whether they are affected, or are even due a refund, should check their P60 form from 2006/2007 to see if any mistake, such as an the allocation of an incorrect tax code, was made.

If you live in Northern Ireland and require advice on any tax matter, such as income tax, inheritance tax and capital gains tax, you can contact the specialist tax team at Wilson Nesbitt solicitors in Belfast or Bangor by emailing tax@wilson-nesbitt.com . Alternatively, you can click here to visit the relevant section of the website for information.



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