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Should this particular problem affect contractors very much? As I understand it, the problems are mostly down to discrepancies between different sources but small company directors submit tax returns based on their own company records and it's all calculated online so there shouldn't really be any major ones. Most probably check the PAYE payment against the HMRC CD at year end too. Think the only real problem is likely to be wrong tax codes.
Tens of thousands of householders ordered to repay tax to HM Revenue and Customs face being charged interest on the money at six times the Bank of England base rate.
Some of the 1.4 million people being told they owe a total of £2 billion in underpaidtax will have to pay 3 per cent interest on the money if they cannot pay their bill immediately. They face the charge even though the revenue is to blame for the underpayments.
Tax rebates for people who paid too much over the past two years will attract only 0.5 per cent interest.
Special message from me to Hector:
How did this happen? Who's to blame? Well certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you're looking for the guilty, you need only look into a mirror.
Should this particular problem affect contractors very much? As I understand it, the problems are mostly down to discrepancies between different sources but small company directors submit tax returns based on their own company records and it's all calculated online so there shouldn't really be any major ones. Most probably check the PAYE payment against the HMRC CD at year end too. Think the only real problem is likely to be wrong tax codes.
Shouldn't do. But then again, some of our esteemed colleagues do use Umbrella Companies. So who knows?
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