Half of Brits say no to paying back the taxman

Following the announcement last week that HMRC had miscalculated workers' tax bills over the past two years, moneysupermarket.com has found Brits are unwilling to repay the tax error money.

In a site poll run by moneysupermarket.com half of respondents (49.1 per cent) revealed that they don't think HMRC is right to reclaim the tax error money, as it made the mistake. A further ten per cent of those polled, supported not paying back the money, due to the impact it will have on people's budgets and finances, as most will not be prepared for this unexpected expense. However, one in five respondents felt the HMRC was right to ask for the money back as taxpayers expect a refund when they are owed money, while a further 17 per cent said people should pay what they owe.

Clare Francis, site editor at moneysupermarket.com, said: "It is estimated that over 1.4 million UK workers will be required to pay out an average of £1,428 in underpaid tax due to the recent tax blunders committed by HMRC. From April 2011, repayments will be taken through PAYE contributions and HMRC is issuing letters to those affected outlining how much they will be paying and over what time frame. For most, this extra burden will come as a sharp shock at a time when their finances are already strained to breaking point.

"The good news for those affected is that they will not have to pay back the money straight away, so should have plenty of time to put their finances in order. By preparing early, consumers can try to mitigate these extra costs and avoid a dramatic shock to their budgets. We would advise consumes to look at their monthly spending and identify areas where they could cut back, for example, are they on the cheapest energy tariff, as moving to the best online deal could save £225 over a standard tariff deal. It's also vital that those affected review their finances and ensure the products they are using are generating as much value as possible for them."