George Bull, Head of tax at chartered accountants Baker Tilly is said to have made an estimation of the overpaid taxes by the ignorant taxpayers. An estimated £7.2bn is what the taxpayers have been paying since 1995/96 ever since self assessment was introduced.
However for all those claiming the money back, the disappointing thing is that they will be able to claim back extra tax paid in the past four years and not beyond that. The Government has been earning a steady stream of income since the last 14 years because of the taxpayer's ignorance and inertia.
The Revenue or National Audit Office figures on overpayments range from £13.5m in 1996/97 to £3bn last year and these overpayments shall be paid back for the past four years and not more. However, all the ones who have already claimed for the money shall not be given a second chance to do the same.
"I presume the figures are based on numbers of open cases. The term 'open case' does not mean the wrong tax is being paid or that a repayment is due", said a Revenue Spokesman.
The PAYE system is said to have overcharged as much as 4.3 million taxpayers in the last two years, which if calculated would a repayment of £1.8bn. The problem is however said to have emerged ever since there was an introduction of self assessment, wherein it was expected that the taxpayers had enough knowledge and awareness about the money they paid.