Estimated number of errors in the tax system is on the rise despite the new 'more accurate' £273m system

More than five million workers have paid the wrong amount of tax, with a vast number now facing attempts to claw it back by HM Revenue and Customs. An estimated 3.5 million paid too little tax through the Pay As You Earn system in 2013-14 and will now have to pay back the money in future years, despite the introduction of a multi-million-pound reform meant to improve the system’s accuracy. HM Revenue and Customs has started writing to around 5.5 million taxpayers to tell them they paid the wrong amount of tax through PAYE last year.

Some two million paid too much and will be able to claim money back from the tax man. The average error will be £300, tax officials estimate. Those due a rebate can claim a cheque from HMRC, while those who underpaid can repay through PAYE next year.....Read more here