A New computer system introduces in the UK to handle PAYE (salaried employees) tax has uncovered that the wrong tax was being charged for nearly 6 million people. In total, some £2bn was underpaid and £1.8bn overpaid. For those due refunds, the average refund will be £420.
How can this happen?
Easily enough I’m afraid. This is due to a simple tax code that each employee is given was incorrect. This type of mistake is something that often occurs in Ireland resulting in the taxpayer overpaying tax. The reason it happens is that over 40% of employees believe that their employer looks after all their tax affairs. Unfortunately, the employer only gives tax codes and tax credits as per instruction from Revenue. So is often wrong.
If you are unsure if your tax is being correctly calculated, then remember with a Red Oak Tax Refunds tax assessment, we have no charges if we do not find you a refund, and no dodgy minimum fees and charges if you are due a refund, just our straight % commission.