Archive for September 4th, 2010

4
Sep '10

Taxing

   Posted by: lyle    in 1BEM, Cynicism, Domestic, Politics, Stupidity, Thoughts, Weirdness

According to the BBC, Tax through PAYE has been (in some cases) utterly stuffed for the last couple of years.

In the story, about £2bn has been underpaid – but about £1.8bn has been overpaid. Now to me, that’s a case of “Oh sod it, it kind of balances”. But no, in a fit of efficiency (or at least Inland Revenue’s version of efficiency – which isn’t efficient at all) they’re going to send out six million letters telling people that they’ve over- or under-paid, and the differences will be refunded or paid back in the new tax code.

So. Six million letters. Even in second-class post, that’s a minimum of 32p per letter. Which makes a cost of £1,920,000.  Doing the letters first class would be a cost of £2,460,000.

Let’s look at this sensibly.

We’ve underpaid £2bn in tax.

We’ve overpaid £1.8bn.

Which leaves £0.2bn to pay.

And Inland Revenue are going to spend £2 million to get back that £0.2 billion.

Is it just me that sees the idiocy in this? Talk about throwing good money after bad.

And actually, why the flying fuck should the people who have underpaid – through no fault of their own -  be penalised by having to pay extra this year for a mistake made by Inland Revenue itself ?!?