Northern Ireland Taxpayers don’t understand their tax obligations

A new HMRC report reveals that Taxpayers in Northern Ireland and the rest of the UK have a limited understanding of tax and their tax obligations. It also suggest that they feel ill-equipped to deal with issues concerning their tax and they generally consider management of their tax to be the responsibility of their employers.

The report is a result of research by HMRC, with the intention of gauging how well taxpayers understood tax and the taxation system, so as to identify how taxpayer experience of the PAYE process can be improved with a focus on using the digital account.

The research found that taxpayer knowledge of how tax works is limited and few fully understood how their tax was calculated and what would trigger a change. It identified that individuals do not feel equipped to deal with issues concerning their tax; do not generally recognise their role and responsibilities in managing their tax; and were not engaged with their personal tax, seeing it as their employer’s or pension provider’s responsibility under the PAYE system.

The research also indicated that individuals found the idea of an online tax account appealing if it could educate them about their tax, provide a facility to check their details, and give them the opportunity to interact with HMRC digitally.

Wilson Nesbitt Solicitors based in Belfast, Northern Ireland can assist you with any tax compliance issues and help if you have been selected for a tax enquiry. If you need to talk with one of our tax advisors please contact us by calling 0800 840 9288.