"Almost six million people across the UK are about to be told they've paid the wrong amount of tax because employers were sent the wrong tax codes by Revenue and Customs. The first letters will go through letterboxes on Tuesday telling those affected that they will either get a refund, or pay more tax next year to make up the shortfall.So with various tax credits being cut and various benefits either being frozen or cut - and VAT to go up to 20% in a few months time - those that will have to make up their underpayment over the next year rather than getting a refund will be feeling the pinch even more... A underpayment that has not their fault...
Around £2bn has been underpaid through the Pay as You Earn tax system and the errors have been identified by a new computer system. The average underpayment is £1,400 - which will be a painful amount to lose next year for those families. There is not much you can do - other than check to make sure the tax calculation is correct. Obviously it only affects employees paid through the PAYE system and not those people who are self-employed."
And remember we're only in this mess because of the financial sector going into meltdown - and having to be bailed out by - what was it again? -Oh yeah, lot's and lots and lots of tax-payer's money.
Mmmmm. Something is not very fair here.