Inland Revenue Encouraging Switch To PAYE System For Certain Taxpayers

by Robert Lee, Tax-News.com, London

21 October 2004

According to a report in the Independent newspaper, the UK’s Inland Revenue is encouraging certain taxpayers to switch to the PAYE (pay as you earn) system from the self assessment system in a bid to save the department some money.

The paper reported that Richard Lloyd-Warne, a tax manager at the London office of national accountancy group, UHY Hacker-Young, is one taxpayer who has received a letter from the Revenue inviting him to forgo the hassle of filling out a self assessment tax return form in favour of paying his full tax obligation by PAYE.

“The Revenue's offer that I need not complete a tax return next year seems kind-hearted on the surface,” observed Lloyd Warne.

However, he believes a more sinister motive lies behind the Revenue’s actions.

“It actually means they won't need to send me the rebate that I'm entitled to receive. It's outrageous. If just 10,000 taxpayers take up their offer, it could save the government millions of pounds - as well as saving them the cost of processing the returns!”

Lloyd-Warne considers this move a deliberate tactic by the Revenue to reduce the number of legitimate refunds it has to pay, and advises taxpayers to continue filing their own returns, arguing there is “a point of principle at stake.”

“If you are entitled to a rebate, make sure you get it. Don't be hoodwinked by the Inland Revenue,” he cautioned.

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