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Revenue and Customs boss says he need not apologise | |
(about 2 hours later) | |
By Paul Lewis Presenter, Money Box | By Paul Lewis Presenter, Money Box |
The UK's top tax man has refused to apologise after taking the wrong amount of tax from six million people. | |
Dave Hartnett, Permanent Secretary at her Majesty's Revenue and Customs, claimed media stories of blunders and IT failures were wrong. | |
And he warned those who owed £2,000 or more in back tax they would have just over three months to repay it in full. | And he warned those who owed £2,000 or more in back tax they would have just over three months to repay it in full. |
But John Andrews of the Low Incomes Tax Reform Group said this could penalise some widows and pensioners. | But John Andrews of the Low Incomes Tax Reform Group said this could penalise some widows and pensioners. |
Speaking exclusively to Radio 4's Money Box programme, Mr Hartnett said: "I'm not sure I see a need to apologise." | Speaking exclusively to Radio 4's Money Box programme, Mr Hartnett said: "I'm not sure I see a need to apologise." |
He added: "I've read the papers, listened to the media and heard stories of HMRC blunders and IT failure - neither of those are true." | He added: "I've read the papers, listened to the media and heard stories of HMRC blunders and IT failure - neither of those are true." |
He said the 5.7 million letters that he would be sending out to taxpayers before Christmas were the result of a normal process of matching the tax deducted from each taxpayer with their circumstances. | |
He confirmed that 1.4 million people would be told they had extra tax to pay. | He confirmed that 1.4 million people would be told they had extra tax to pay. |
And he revealed that those who owed the most tax would have the least time to pay. | And he revealed that those who owed the most tax would have the least time to pay. |
"Those [who owe] more than £2,000… will be given an opportunity to pay based on a notice from us, or, failing that, they will be brought within self-assessment. | "Those [who owe] more than £2,000… will be given an opportunity to pay based on a notice from us, or, failing that, they will be brought within self-assessment. |
"People who enter self-assessment are expected to pay within three months and a little bit more." | "People who enter self-assessment are expected to pay within three months and a little bit more." |
Tighter deadlines | Tighter deadlines |
Those owing below £2,000 will have the money deducted from their pay or pension over 12 months, or three years in cases of hardship. | Those owing below £2,000 will have the money deducted from their pay or pension over 12 months, or three years in cases of hardship. |
Mr Hartnett said that system would apply to "more than 80%" of those who owed money. | Mr Hartnett said that system would apply to "more than 80%" of those who owed money. |
But he defended the tighter deadline for the biggest bills. | But he defended the tighter deadline for the biggest bills. |
"I think owing the most may actually mean they're earning the most… I think it's very unlikely that a low earner will owe us more than £2,000 as a result of the process we're going through." | "I think owing the most may actually mean they're earning the most… I think it's very unlikely that a low earner will owe us more than £2,000 as a result of the process we're going through." |
But John Andrews, chairman of the Low Incomes Tax Reform Group, was not convinced. | But John Andrews, chairman of the Low Incomes Tax Reform Group, was not convinced. |
"The £2,000 procedure gives me concern," he said. | "The £2,000 procedure gives me concern," he said. |
"There are circumstances in which over a two year period, for example on a bereavement where a widow suddenly inherits part of her late husband's pension, it is quite easy to run up this amount. | |
"I hope that HMRC would live up to the Your Charter expectations and look at individuals." | "I hope that HMRC would live up to the Your Charter expectations and look at individuals." |
Mr Hartnett said that the main batches of letters to taxpayers would start going out in "early to mid October' and he still intended they would all arrive by Christmas. | |
Three quarters of those written to - 4.3 million people - will get a rebate averaging £400. | Three quarters of those written to - 4.3 million people - will get a rebate averaging £400. |
The rest, 1.4 million, will be told they have to pay the extra tax. | The rest, 1.4 million, will be told they have to pay the extra tax. |
None will have to pay less than £300 and the average will be £1,428. Up to 250,000 could be asked for £2,000 or more. | None will have to pay less than £300 and the average will be £1,428. Up to 250,000 could be asked for £2,000 or more. |
BBC Radio 4's Money Box is broadcast on Saturdays at 12 noon, and repeated on Sundays at 2100 GMT. |