It might be a good idea for consumers to take a close look at their current financial situations if they are expected to pay HM Revenue and Customs (HMRC) tax money that they owe, according to one expert.
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moneysupermarket.com site editor Clare Francis believes that those who have been underpaying tax because of widely reported HMRC errors should aim to avoid major financial shocks.
She stated: "By preparing early, consumers can try to mitigate these extra costs and avoid a dramatic shock to their budgets."
The expert also noted: "We would advise consumers to look at their monthly spending and identify areas where they could cut back."
Consumers need to check they are getting decent value for money when spending cash on things like energy, Ms Francis continued, which might interest those who are looking to get credit in the near future.
As many as 1.4 million people might be in a position where they have to unexpectedly pay a sum of money to HMRC, the expert went on to say.
The remarks made by the site editor follow the publication of moneysupermarket.com survey results relating to the same issue.
Cash should not have to be repaid to HMRC, according to 49.1 per cent of those who were queried in a survey published by the price comparison website, due to the fact it was the tax body itself which was responsible for the error in the first place.
Earlier in the week, a range of guidance was also offered to the public by moneysupermarket.com in relation to the issue of Christmas finance.
Among its advice, the firm recommended that people get into the saving habit now to try and address the expensive nature of the festive season.
Budgeting is also important when it comes to festive spending, the organisation added in its list of tips.
Posted by Tom Burroughs.
