Responsibility for tax code checking set to shift to taxpayers

Her Majesty's Revenue & Customs (HMRC) could be set to make taxpayers responsible for checking they are on the right tax code.According to a This Is Money report, HMRC has plans to impose a stricter test on taxpayers in a bid to avoid tax underpayment. Under the new scheme, the report suggests, individuals will be responsible for checking that their own tax code is correct and for informing HMRC of any changes in their circumstances. Fines could be imposed if mistakes are made. For example, a £100 fine could be issued to anyone who is unaware that they should be submitting a self-assessment tax return. In addition, individuals may no longer be able to appeal unexpected tax bills on the grounds that they were unaware of their tax obligations. They will have to prove that they double-checked their tax code and that all efforts were made to update HMRC on any change in circumstances.Patricia Mock, director of tax at Deloitte, is quoted by This Is Money as saying, “There will be greater onus on the individual to be on top of their tax affairs.”She added, “Essentially, it’s up to you to make sure you’ve got the right code and are paying the right amount. Though it means the rules are clearer, it’ll likely to mean fewer people will benefit.”

http://www.50percenttax.co.uk/index/2012/7/26/responsibility-for-tax-code-checking-set-to-shift-to-taxpaye.html