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HMRC


Gardian

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I must admit that I really don't understand how this revelation of the underpayment of £2bn by 1.5m people, can have come about.

I've got a reasonable knowledge of how personal taxation works in the UK and really and truly, it's not all that complicated. For the majority of people, their tax affairs are entirely straightforward: personal allowance, some deductions from that maybe, and the resultant code supplied to their employer. PAYE takes care of the rest.

At first, I couldn't understand how the Revenue wouldn't have noticed such a significant drop in 'income', but it appears that there was a (more or less) corresponding over taxing of even more people.

In my working life, if there had been such a high level of inaccurate 'invoicing' of customers, there would have been hell to pay. The place would have been in turmoil.  What on earth has been going on? 

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