HMRC fails to meet its PAYE correction deadline
HMRC fails to complete PAYE reconciliations by its own self-enforced deadline
HMRC fails to complete PAYE reconciliations by its own self-enforced deadline
In Partnership With
THE TAXMAN has failed to reconcile PAYE mistakes for 2008/09 and 2009/10 by its own 31 January deadline.
HMRC confirmed that it had processed only 92% of these cases by 31 January.
The Public Accounts Committee said in a report today that the department “failed to understand the risks of its poor quality data, which undermined the effective operation” by the NI and PAYE Service (NPS) computer system. It added that HMRC had hoped to complete the 2008/09 and 2009/10 PAYE reconciliations by January 2011.
The PAC criticised the department for the fiascos of 2008/09, 2007/08 and earlier years, which left an estimated £2bn of tax underpaid and £3bn overpaid. The debacle affected around 15 million people and left an estimated £2bn of tax underpaid and £3bn overpaid.
The “key risk” was “the ten million cases still outstanding where there are issues with data quality that require technical or manual intervention”.
“We look to the department to be able to clearly demonstrate that it has resolved systemic data quality issues by the end of 2011 and that NPS is delivering the benefits that it was intended to bring – including improved accuracy and speed of processing, and prompt processing of under and overpayments,” the committee added.
An HMRC spokeswoman said the department was unable to comment on any aspect of the PAC report until the report presented to Parliament.
More about:
The numbers you crunch tell a story. Your expertis...
16yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleDigital tax accounts will supersede the annual tax return from 2016 Read More...
View articleHMRC bulletin advises penalty notice copies will not be sent to agents Read More...
View articlePenalties for late RTI PAYE filings are to be phased in from October Read More...
View articlePenalties for infringements on the real-time PAYE system are to be staggered over the 12 months to April 2015 Read More...
View articleRTI easement to be extended for micro employers until 2016 Read More...
View articleReal-time PAYE will expose errors and bad practice by businesses, MHA MacIntyre Hudson's Alastair Kendrick warns Read More...
View articleAligning Universal Credit and tax calendars could ease burden on small businesses, ICAEW tax faculty chair says in Hardman Lecture Read More...
View articleHMRC is conducting a survey in order to measure the impact of RTI on businesses Read More...
View article