Millions of UK citizens are set to receive tax rebates this year after payment discrepancies were flagged up by a new computer system.It is believed that around six million people are in line to receive rebates, with payments averaging £400. Her Majesty's Revenue and Customs (HMRC) announced that it would be sending out notification letters during the coming months.
A number of less fortunate taxpayers, meanwhile, are likely to receive news that they owe money to HMRC. Around a million UK citizens have underpaid by an average of £500-£600, and will be asked to settle the bill. HMRC will allow such people to pay in installments.
BBC news correspondent John Andrew suggested that the latest developments represent an improvement in the way HMRC operates: "In a similar exercise last year, Revenue and Customs were criticised for being insensitive over their treatment of underpayers. This time it's being stressed that they can spread what they owe over time by having their tax code adjusted."