HMRC's software error 'may affect more than first thought'

News Article - 23 May 2012
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Many more taxpayers may have been affected by an error on HM Revenue & Customs (HMRC) online filing system than previously thought, it has been claimed.

Following HMRC's announcement of a 40 per cent increase in filing figures, Accountingweb has stated that some of its members had found the tax office's website had not been performing adequately up to January 31st.

According to the website, the option to request that tax owed for 2005-06 is collected through the tax code in box 23.1 in the returns application should have been made inactive after December 30th.

The mistake was later publicly recognised by HMRC on January 30th, with applicants being advised to select the no option to question 23.1 and make provisions that any tax due would be paid by January 31st.

However, this advice is likely to have come too late for most affected workers, who may now face an "unpleasant shock" and have to settle any liability. Those who do not pay by February 28th may well incur a tax surcharge of five per cent and late payment interest, the website warns.

HMRC's figures show that almost three million forms were completed online this year, with some 150,000 being finished in the 24 hours before the deadline.

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