http://www.litrg.org.uk/Newshttp://www.litrg.org.uk/News/2012/tax-rec-not-errHMRC has been attacked for making 5.1 million ‘errors’ in people’s 2011/12 tax. This is unfounded and derives from a misunderstanding of what the PAYE system is currently capable of achieving. As HMRC starts to send out notifications of up to 3.5 million refunds averaging £379 and up to 1.6 million underpayments averaging £537, we reflect upon how these occur and what HMRC can do to make PAYE more accurate during the year.Mon, 14 May 2012 12:39:00 GMThttp://www.litrg.org.uk/2ag5USKbmFUiHOp412x4cHg-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/dig-excl-reportLITRG has today published a new report highlighting the growing problem of ‘digital exclusion’. It provides new evidence that government efforts to move services and transactions online are disadvantaging older people, those with disabilities and the self-employed in particular.Wed, 09 May 2012 04:20:38 GMThttp://www.litrg.org.uk/2is26CuBjYUK89VPRzHRS1w-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/hmrc-apps-initiative-welcomedHMRC have been working in conjunction with software providers to provide "apps" (applications on smartphones) which enable small businesses to keep their records more easily. LITRG welcomes such "educational" initiatives which can show HMRC in a far more favourable light than some of their compliance campaigns aimed at the same businesses.Fri, 04 May 2012 14:19:00 GMThttp://www.litrg.org.uk/2aabppL9SWk21hE36FPq-2fxw-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/tax-info-obligationsThe Low Incomes Tax Reform Group (LITRG) has said that HM Revenue and Customs’ (HMRC’s) assessment of the impact of the introduction of Real Time Information (RTI) on small employers is inadequate. LITRG is concerned that employers who lack internet access or who are not computer savvy will find it very difficult to fulfil their obligations under RTI.Thu, 26 Apr 2012 16:58:00 GMThttp://www.litrg.org.uk/2yl3Ud10abEO6Lfnujn-2fbjw-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/monthly-deadlines-reminders/2012/april-2012Tax credits awards are based around the tax year, making April a key month to review your position particularly in view of the changes to the system now coming in. Here we highlight some points to consider.Thu, 26 Apr 2012 05:23:00 GMThttp://www.litrg.org.uk/2iNsRWZhJGUKEQGssR4CXZQ-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/monthly-deadlines-reminders/2012/april-2012-taxThe new tax year started on 6 April, meaning that now is a good time to take stock of tax and tax credits matters.Thu, 26 Apr 2012 05:23:00 GMThttp://www.litrg.org.uk/2PivbQGWLE0mV77Esg3D7Wg-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/promisesOver recent years HMRC have consistently failed to answer their telephone helplines in anything like a reasonable time-scale. Back in 1997/98 the Inland Revenue aimed to answer a telephone call within 30 seconds 91% of the time. But now, in 2012/13, you can spend four times as much time pushing buttons before you even get in a queue. The subsequent wait can be excessively costly for the caller on a low income.Wed, 11 Apr 2012 08:55:00 GMThttp://www.litrg.org.uk/2DJvIEq7MKE2GAv77FTSdbg-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/tax-credits-changes-in-2012-the-factsFrom tomorrow, the already very complicated tax credits system is undergoing more changes. Overall this will result in a second round of tax credits cuts, although not everyone will lose out. This article explains those changes in more detail.Thu, 05 Apr 2012 20:34:00 GMThttp://www.litrg.org.uk/2w0fs5RON60OWi1yutBSsOA-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/sell-onlineHMRC have announced that they are now on the trail of people who buy and sell things online. They suspect that not everyone is paying the tax they should on their trading profits. Who is trading, and who is not, is often difficult to decide and the results of that decision have wider effects than just income tax or VAT. In this article we seek to shed some light on this complex area.Mon, 02 Apr 2012 07:16:00 GMThttp://www.litrg.org.uk/2NB9MaKFIbUezNf1VOPBNgg-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/contact-hmrc-tc-stopFrom 6 April 2012, HMRC will stop working tax credit for most couples with children who do not work at least 24 hours a week between them. This includes some who will still be entitled from 6 April because they are covered by one of the exceptions to this rule. HMRC have failed to tell these claimants that they must contact them by 6 April if one of those exceptions applies to them.Wed, 28 Mar 2012 11:28:00 GMThttp://www.litrg.org.uk/2BktFUfKPQ0mHAl3bt0t18Q-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/granny-taxA press storm is growing about the nature of changes to the age allowance provisions announced in the Budget, with some commentators characterising these as a Grannytax. We do not like the way the proposed changes have been introduced and explained, but we think this characterisation as a tax is misleading.Thu, 22 Mar 2012 12:45:00 GMThttp://www.litrg.org.uk/25dX-2b65BfXEGNuWblc94mZw-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/budget-2012Today the Chancellor said that he was delivering a Budget for those on low and middle incomes. Did he succeed? For those on the lowest incomes the answer must be “no”, for those on lower middle incomes the answer is “perhaps”.Wed, 21 Mar 2012 07:12:00 GMThttp://www.litrg.org.uk/2x2Tlr8kUqk-2bauawvrBL37A-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/carers-tax-creditsA coalition of charities working for carers and disabled people, led by the LITRG, very much welcome the Government’s decision to allow couples where one partner is entitled to carer’s allowance to continue getting working tax credit (WTC) by working just 16 hours a week. Without this change, they would have been required to work 24 hours a week, with one partner working at least 16 hours, or face losing WTC.Mon, 19 Mar 2012 16:18:00 GMThttp://www.litrg.org.uk/2NBkivy403E6hSMixrCuT7Q-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/tax-debt-not-like-ordinary-debtAs some football clubs are finding out, owing money to the tax man can be a significant problem. For people on low incomes tax debt is something to avoid, but if it happens then it needs to be dealt with quickly and knowledgeably. Tax charities, led by Tax Aid, have produced a series of videos to help you do just that.Wed, 14 Mar 2012 09:00:00 GMThttp://www.litrg.org.uk/2jnL1F-2bd8BUGNiDfV8N9UMA-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/monthly-deadlines-reminders/2012/tax-and-tax-credits-prepare-for-the-new-yearThe new tax year is approaching, with 2011/12 drawing to a close on 5 April. So this month’s reminders article focuses on tidying up this tax year’s loose ends and looks forward to the year ahead.Mon, 12 Mar 2012 14:31:00 GMThttp://www.litrg.org.uk/2yVWuD-2fp880itchyh00syFg-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/hmrcs-digital-by-default-response-strikes-right-balanceHaving long advocated that digital by default should not mean compulsion, we are pleased that HMRC’s response to the Digital by Default consultation recognises the need to take an inclusive approach and not a mandatory, statutory one. However, we believe this approach should be consistent across all taxes, including VAT.Mon, 12 Mar 2012 10:31:00 GMThttp://www.litrg.org.uk/2BjL8o3fPR0GIn38TOkvaiw-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/tax-credits-listen-to-hmrc-and-lose-thousands-of-poundsA misleading statement in an HMRC letter sent to over a million tax credits claimants may persuade people to leave the tax credits system. This could mean they miss out on future payments. Some people, such as those who are pregnant, or in danger of losing their jobs, or who want to take a new job and incur childcare costs, or may be disabled, could lose out on thousands of pounds as a result of misleading information from HMRC.Fri, 09 Mar 2012 15:35:00 GMThttp://www.litrg.org.uk/2SIzJmKI3jE-2buKIwbYXpYVQ-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/pen-tax-simpThe Low Incomes Tax Reform Group (LITRG) has welcomed the Office of Tax Simplification’s (OTS) interim report on pensioner taxation and looks forward to supporting the OTS’s ongoing quest for improvementsTue, 06 Mar 2012 11:36:00 GMThttp://www.litrg.org.uk/2XNhaG9f7hUS0z5NIatVASg-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/benefits-lose-partnerThe Government has consulted on a number of benefits issues over the last 18 months, claiming to be reviewing the welfare system and adjusting its design for the 21st Century. But do their plans really match their aims?Mon, 05 Mar 2012 11:05:00 GMThttp://www.litrg.org.uk/2smj9qldsVEeWh0Ygxdtr7A-3d-3dYorkLNER@aol.comhttp://www.litrg.org.uk/News/2012/using-tax-data-for-child-maintenance-litrg-concerns-remainDraft regulations set out how the Government intends to base the new system of calculating child maintenance on tax data obtained direct from HM Revenue and Customs. LITRG is concerned that there will be gaps in the data and that child poverty could increase as a result.Mon, 27 Feb 2012 11:54:00 GMThttp://www.litrg.org.uk/2nBmukctJWkShxyobyy9exA-3d-3dYorkLNER@aol.com