UK PLC employees 200 year old dummies, says HMRC
HMRC yesterday (18 October) revealed that UK companies employed 128 members of the Dummy family, 500 A.N. Others and over 500 mysterious Mr and Mrs Xs. It also said that UK companies employed 40 people aged over 200 years old during the 2009/10 tax year.
This daft data has all been submitted by UK companies in their annual PAYE tax returns and is followed by an announcement today (19 October) from HMRC that for the second year running over one million tax payers will receive an unexpected bill of around £600 for underpaid PAYE.
James Cowper accountants and business advisers - who currently don’t employ any AN Others or Dummys and who certainly do not ask staff to work for 200 years - warn that giving incorrect data to HMRC can leave real problems for employees and the amount of tax they might have to pay.
Chris Lee, a partner and business tax expert in the Reading office of James Cowper said: “HMRC is working with a new IT system and it now appears a fact of life that the PAYE system will result in huge numbers of people paying the wrong amount of tax. Last year HMRC sought to claim £1.8bn in underpaid PAYE, this year it is looking to claw back £700m. Companies who submit incorrect data, such as the wrong name, may cause real problems for their employees.”
“However, it is not all bad news,” adds Chris, “as around six million tax payers will receive an unexpected present from the tax man with a tax rebate averaging £400 following HMRC overcharging.”
Whether a company employs a Mr X or Mrs A.N.Other it is important that company bosses take care to ensure that HMRC is given the correct data.
Chris Lee, Partner, James Cowper LLP +44(0)118 9590261 or email clee@jamescowper.co.uk
19.10.11