Some employers and payroll bureaux have been experiencing difficulties with HMRC processing duplicates and demands for extra tax that is not due. Resolution of these “disputed charges” often takes many, many months.
“New digital tax accounts will be welcomed by many who dread the thought of completing their tax return and procrastinate until the January filing deadline.
“One of the many benefits will hopefully be the end of the bottleneck which regularly occurs at this time. The system, however, will only be as good as the data it displays. Those who pay their tax through Pay As You Earn will see the information submitted each payday by their employer through RTI (Real Time Information). Employees will therefore be able to see this information updated throughout the year.
Some employers and payroll bureaux however have been experiencing difficulties with HMRC processing duplicates and demands for extra tax that is not due. Resolution of these “disputed charges” often takes many, many months.
It is disappointing that the Chancellor today did not give any further details of the previously announced review of RTI. In our opinion, it is essential that this review is completed and the current RTI issues resolved because these discrepancies will be displayed to employees under the new system. Vulnerable employees in particular are at risk as they may inadvertently pay tax that is not due.
Angela Pink, KPMG Corporate Communications
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.