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Page last updated at 15:20 GMT, Friday, 3 September 2010 16:20 UK

Tax errors admitted

pay slip
BBC Radio 4's Money Box
Saturday, 4 September 2010 at 1204 BST on Radio 4 and Online

HM Revenue and Customs (HMRC) has admitted that it has taken the wrong amount of tax from almost 6 million people.

About 1.4 million people owe an average of £1,500 each after HMRC did not take enough tax through the Pay as You Earn (PAYE) system in the past two years. Around £2bn has been underpaid.

While another 4.3 million people will get a rebate because they have paid too much. The amount overpaid totals £1.8bn.

Money Box will examine what this could mean for taxpayers.

Money Box listeners are being offered a new financial product offering what is described as a risk and cost free way to make money from their home.

A new company called Equity IQ is launching its Property Income Plan in a few weeks and it seems some financial advisors are already trying to sell the plans to customers.

Marketing literature seen by Money Box, says homeowners could receive an income of 5% a year paid on half the value of their home.

In exchange the homeowner lets the company have a legal charge on half the value of the property. In effect you are renting out half the capital value of your home for a fixed period.

Charlotte McDonald investigates how the product works and its risks.

Related information:

Bad Investment

HSBC Logo outside branch
The Financial Ombudsman said HSBC had made serious mistakes

How long should it take a bank to follow your instructions to close an investment which is rapidly losing money?

You would hope at most a few days, but in the case of one Money Box listener it took almost a year, resulting in the loss of tens of thousands of pounds.

Bob Howard investigates.

Related information:

Are cash prizes tax free?

Comedian Russell Kane, winner of the Edinburgh Award 2010
Comedian Russell Kane won the Edinburgh Award 2010

Stand up comedian Russell
Kane set us a challenge upon winning this year's Edinburgh Festival Comedy Award.

When asked about the win, Russell said he'd have to check with Money Box Live about whether he needs to pay tax on his £10,000 prize.

We find out the answer to Russell's question, and also when you do and don't have to pay tax on prizes and windfalls.

John Whiting, tax policy director at the Chartered Institute of Taxation provides the answers.

Related information:

BBC Radio 4's Money Box: Saturday 4 September at 1204 BST and Sunday 5 September at 2102 BST.

Money Box



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