Fresh warning over tax code errors
8 Feb 10
HMRC has issued a further warning over problems in a new IT system for National Insurance and PAYE that could mean taxpayers being issued with the wrong codes
In a statement disseminated through the Chartered Institute of Taxation, HMRC said: “The transition to the new system has brought to light some discrepancies in our existing records and this is resulting in a number of incorrect coding notices being issued.
We have been working hard to identify situations where customers could receive an incorrect coding notice and have identified three key situations where this may occur. These are:
- Where a previous employment stopped sometime ago but our system has not picked this up and a coding notice has been sent for that employment
- Where two notices have been sent for the same employment and
- Where the code BR (basic tax) or DO (higher rate tax) has been given for an employment or pension for the first time.
We are looking to correct as many of these discrepancies as possible well in advance of the new tax year and we are doing all we can to ensure no one pays too much tax from April.”
HMRC recommends that taxpayers and advisers concerned about potential tax code errors should check the code issued using guidance included with the coding notice and the HMRC website www.hmrc.gov.uk/incometax
Alternatively, taxpayers can contact HMRC on 0845 3000 627.