Anyone who has checked the news today will know that HMRC's latest gaff has resulted in tens of thousands of people over or under paying tax. For some this will also have impacted on their entitlement to tax credits and benefits.
So what should you do?
- If you have paid too much you will automatically receive a repayment.
- If you have paid too little and the underpayment is under £2,000, HMRC will automatically add this to your tax for 2011-12. This spreads the collection of the underpayment throughout the year.
- If this results in hardship, you can ask for the underpayment to be included in your tax code over a longer period.
- If the underpayment is over £2,000 HMRC will write to you and ask for direct payment. You should contact HMRC if you wish to discuss a repayment schedule.
- If your benefits have been affected then you should contact HMRC to discuss this.
In all cases it is important that you obtain a calculation from HMRC to determine whether they are correct in their assesment.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.