The Scotsman reports that HMRC’s own online tax calculator for self assessment is wrong, meaning people could be paying too much tax if they fall into certain income brackets.
Two groups of taxpayers are being overcharged if they file their tax returns online:
1 People who earn less than £16,000 a year – for example, from employment earnings, pension or rental income – and who exceed the Personal Savings Allowance, which is £1,000 a year for basic rate taxpayers and £500 a year for higher rate taxpayers.
2 Those who have total taxable income of between £27,000 and £32,000 a year, and who also receive enough income in the form of dividends to take them over the additional rate tax threshold of £150,000.
HMRC has admitted that its online systems are not able to cope with these two groups, and advises people who fall in these categories to file paper returns.
HMRC state that the problem won't be fixed this year.
Tax does have to be taxing.
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