It has emerged that the HMRC computer system was telling people they were owed five-figure tax refunds. The error was initially spotted by chartered accountants Blick Rothenberg when they spotted a note on the self-assessment account of one of its clients which said a refund was due.
Further checks were made and it was discovered that all of Blick Rothenberg’s clients had notes on their accounts stating that they were owed refunds that ranged from just a few pounds to a staggering £24,000.
Frank Nash, tax partner at Blick Rothenberg, said: “HMRC’s online system for self-assessment was down a couple of days ago. It was resurrected and when we went on to it to look at our clients’ statements of account to tell them what their current tax situation was, we noticed that everybody was due a repayment.”
Mr. Nash has also stated that this is not an isolated incident. After the group spoke to other tax firms it was established that all their clients were due a tax refund too. Mr. Nash has warned his clients against claiming for the money as they were not entitled to it.
Though the error has been spotted early and is in the process of being resolved, the people who are genuinely owed money by HMRC could have to wait much longer before they receive their refund. Couple this with self-assessment tax payers who do not have an accountant and more confusion is likely to ensue.
A spokesman for the HMRC has said: “We are urgently investigating this issue which appears to affect a small number of agents. There is no question of anyone receiving money they are not entitled to or being asked for money they do not owe.”
It came to light the problem had occurred when HMRC tripled the pay of a key designer of its new and controversial PAYE system to stop him leaving the project at a crucial point.
