About six million people are set to receive tax rebates averaging £400, while another million will learn they have underpaid their tax by about £600. Her Majesty’s Revenue and Customs (HMRC) said letters would begin going out in the next few months, with those owing money able to pay in stages.
It is the second year tax and National Insurance discrepancies have been identified by a new computer system. HMRC said the number of cases would reduce “as the new system beds in”.
Those who will be told they have underpaid tax are expected to owe between £500 and £600 on average. Read the story here: Tax rebate
The charity Credit Action has been looking at the number of changes to tax and benefits that will take effect from the 6th April. These are set to lose the average family £200 a year and is on top of an estimated £680 loss in January due to adjustments including the rise in VAT.
National Insurance contributions are set to rise from 11% to 12% for all 29 million employees in the UK, and around 750,000 people are now expected to hit the threshold for the higher 40% tax rate from April after these changes.
If this is going to affect you or you have any comments about these changes, please leave details below. Read the full story here: April tax shock