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What Rebecca has to say about the current PAYE situation PDF Print E-mail

This media frenzy is doing my health no good at all. I have never heard so much rubbish talked about tax in all my life. Dave was right first time - reconciling your tax position is something that has to happen when people have frequent job moves. I do think that the old PAYE system had become unfit for purpose, but screaming about that just as the issue has been resolved by introducing a new system is plain daft.

For YEARS MPs have been chastising HMRC (and rightly so) for failing to reconcile PAYE cases. It is something I have direct experience of and which made me very angry at the time - an employee taxed at BR for their entire working life and nobody spotted it. Now they have NPS and have started to do it everyone is jumping up and down. Let's not forget that the significant majority of people will get refunds - which they probably wouldn't otherwise have received.

And I'm afraid I don't have a bleeding heart about people who owe more than £2,000 either. At 20% tax rate that's at least £10,000 of income which was received untaxed. And THEY DIDN'T NOTICE???? Darn sure I would have. In fact my suspicion would be that they did notice and have been keeping quiet in the hope that HMRC doesn't either.

It's time we in the UK stopped being such idiots about our financial affairs. All children should be taught to check their tax and NIC before they leave school, should understand what a tax code is and how PAYE works. Then everyone would know what the reconciliation was going to say when it arrives because they will already have checked it when they get P60's in May.

And the Editorial in the Times today is a disgrace - with a veiled suggestion that there is some evil plot in the plans for PAYE modernisation. HMRC has its problems, but the current witch hunt by the lay media does little to address the real problems and seriously engage with putting things right.

From Rebecca Benneyworth's comment on AccountingWeb.