PAYE Contributions Debate

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Department: HM Treasury

PAYE Contributions

Peter Bone Excerpts
Wednesday 8th September 2010

(13 years, 8 months ago)

Commons Chamber
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Peter Bone Portrait Mr Peter Bone (Wellingborough) (Con)
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The Minister is responding excellently to the question, but I must say to him gently that it would have been better had he made a statement rather than being asked to come to the House.

PAYE has always been a collection of money on account towards the final tax liability, but the Minister has not made it clear to me whether a great number of people are affected by the current situation just because people’s lifestyles have changed. Was there also an error in the basic collection by the Revenue of the correct information given by taxpayers?

David Gauke Portrait Mr Gauke
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Our understanding is that the fundamental problem is changing working practices—that is the long-term issue. Of course, there may be circumstances in which HMRC has made errors, but changing working practices is the essential problem. It is also the case that the new computer system more accurately and rigorously picks up problems than happened before. That is why we have seen the increase in underpayments and overpayments. However, my hon. Friend is absolutely right that there have always been underpayments and overpayments under the payment-on-account PAYE system.