HMRC estimates that 3.5m people paid too little tax through the PAYE system in 2013–14, and will now have to pay back the money in future years. A further 2m people are thought to have paid too much tax. The figures mean that a total of 5.5m people paid the wrong amount of tax throughout the year, an increase on the previous year’s figure of 5.2m. This is in spite of the introduction of HMRC’s £270m Real Time Information (RTI) programme, which was meant to improve the system’s accuracy.HMRC said the increase in corrections was largely down to a rise in employment levels, and that RTI was still expected to result in a reduction in the number of corrections over time.
Source: The Daily Telegraph (20/06/2014)