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Automated Tax Bills...
Monday 26 July 2010

Dains are advising clients that HM Revenue and Customs (HMRC) has completed the next stage in the upgrade of its NI and PAYE Service (NPS), which will see many taxpayers receiving automated bills for the first time.

HMRC carries out a review at the end of each tax year to ensure the amount of tax they had paid that year using PAYE was equal to the amount the individual ought to have paid according to their tax code.

Andy McQuillan, Tax Partner at Dains said: “This review used to be carried out manually by HMRC staff, but the new system works this out automatically, and will contact individuals who it believes have under or overpaid tax."

“However, this system has been shown to have its problems, having previously issued a number of incorrect tax codes at the start of this year. Therefore anyone receiving an automated notice should check carefully for errors.”

Anyone who completes a self-assessment tax return should not need to worry as the calculation they make on tax due will override any automatic calculation by HMRC.

For more information or advice please contact Andy McQuillan on tel: 0845 555 8844 or email tax@dains.com

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