Confusion over Tax Rebate to Employers

Millions of employees and pensioners are currently expecting letters from the HM Revenue & Customs (HMRC) with information whether they would need to pay or take back taxes.

This upheaval started when some of the employers miscalculated the amount of taxes deducted from the salary of every employee, and consequently some of the employees paid more taxes than the amount they should have paid whereas others paid less.

The HMRC blamed the newly applied tax system, which is called Pay As You Earn (PAYE). This system depends on collecting the tax on an annual basis.

As a result of this mistake in the tax code system of the HMRC, 1.4 million employees would be paying additional taxes as they did not cover it all, while 4.3 million of them would be paid back by the Government as they paid extra.

Starting tomorrow, the letters would reach the mistaken employees and the process of sorting and sending the letters would last till Christmas.

An HMRC Spokesman said, "This year and going forward, the new IT system will mean more people paying exactly the right tax at the time than ever before". He also advised people to calculate their own taxes and to examine whether any additional taxes have been added to them for services, which they did not actually use.