It has been discovered six million people did not pay their taxes in the correct amount in the Pay As You Earn system. Tax officials have been told to put their time into doing something else instead of searching for the people responsible for it. Officials with HMRC are sorting over 7 million old cases dating back 3 years. The total of what they are looking for – up to 1.5 billion pounds.
Sources have said the only tax money which is outdated to look for, is that which was the result of fraud. And there could be a hefty amount of fraudulent cases to try and investigate, with more than 1.5 billion pounds of funds being under paid. Where does the total amount of 1.5 billion pounds come from? Since there was a group of taxpayers who overpaid in the amount of 3 billion pounds, and there was a group who underpaid by 1.5 billion pounds, it is easy to see.
One of the HMRC revenue workers told the local press: “If we had the chance to sort it out three years ago, we could have recovered the money. It is now likely to be written off if its over two years – we’re not looking at under payments beyond two years.”
Although it is a significant amount of unpaid taxes, tax collectors have been told that if they attempt to collect from people who owed for more than two years, it will prompt legal action.
One Government source commented on the root of the problem, saying: “We inherited a mess from Labour who simply ignored the problems building up at HMRC. We are dealing with it quickly and in a way that tries to make it as painless as possible to taxpayers.”