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HMRC will take sympathetic approach in matters of hardship
Taxpayers who receive PAYE letters from HMRC showing that they owe more than £2,000 as a result of errors in their tax codes will not be chased for interest and penalties if they cannot pay the amount within the usual time limits.
The Exchequer Secretary to the Treasury, David Gauke confirmed in the House of Commons (see Hansard, 15 September 2010, vol 515, col 909) that HMRC will take a sympathetic approach in matters of hardship, and will ensure ‘everyone has an opportunity to pay off the underpaid amount without interest or penalties being applied’.
