Time limit hope onunderpaid tax billls
People hit with an unexpected tax demand may be able to refuse to pay up as HM Revenue & Customs could have exceeded its own time limits in which to ask for the money, say experts.
Under tax rules HMRC must issue demands for underpaid tax within 12 months of the end of the tax year in which it became aware that people had underpaid. This could affect the nearly six million people who it was revealed at the weekend have paid the wrong amount of tax.