25 Jan 2010
HM Revenue & Customs has sent the wrong tax codes to a number of people in the UK because of a fault with new IT systems, according to the Chartered Institute of Taxation.
Tax codes identify which tax bracket a person will be in for the coming year. Taxpayers have a small window of time in which to identify and point out any errors before employers are informed of their employees’ tax codes in March.
But a move to a new PAYE system means the HMRC database appears to have lost information it holds about people leaving jobs and as a result is combining taxpayers’ current employment records with old data. It is concluding that they have two jobs, thus putting them in a higher tax bracket, the institute said in a release today.
Andrew Hubbard, president of the Chartered Institute of Taxation, said most people on PAYE are used to assuming that what the taxman sends them is correct.
"Many file away coding notices without even bothering to check them," he said.
"But this year, many of them are being given wrong information, and unless they spot it and tell HMRC, their employer will receive the wrong information too, and they could get a nasty shock when they open their April pay packet and see it is as much as a hundred pounds lighter than they are expecting."
Hubbard is calling HMRC to publicly state the extent of the problem and what it is doing to tackle it, and mount a major publicity campaign to make taxpayers aware of the problem.
A spokesman for HMRC insisted the IT behind the new system is working as it should, but added there were cases where some people received an incorrect coding notice because of a discrepancy with records.
"Anyone in this position should check their code using the guidance included with the code and on our web site. If they cannot resolve their query they should call HMRC to make sure the right tax code is applied. We apologise for any inconvenience caused," said the spokesman.
I am pulling my hair out! Started a new job recently, HMRC sent me a letter saying they would put me on a BR (basic rate) tax code, I called them and they sorted me out with the correct tax code (647L). Two months later £1,400 is taken out of my pay because they have put me back on the BR tax code! HMRC say they have sent the new tax code to my work HR but no one has received anything, spending hours waiting on the phone while all the while nothing is happening! It's a joke- no apology no nothing!
Posted by: Miss Asare 02 Jul 2010
Yep, they took 50% of my pension money today, how the hell am i going to survive this month? Tried to ring them for 3 days. This country is doomed and so am i if i don't get my money back. Is anybody trying to sought this out? And has anybody got a contact number!
Posted by: nick 29 Jun 2010
I have opened my payslip and I've paid an extra £700 tax. How am I supposed to support my daughter as I'm a hard-working mother. I cannot get through to tax office. Daylight Robbery. I had to borrow the money from my boss to pay for my childcare.
Posted by: alison Furnish 29 Apr 2010
I checked my latest pay to find £500 missing. I'd been taxed on code D0 with all my salary being taxed at 40%. It took ages to get through to the tax office and when I did was told the adjustment would be made next month. Where is the accountability for the trouble they cause individuals? Not even an apology.
Posted by: GL 15 Apr 2010
I received a D0 tax code, for a second job that I don't have, at a company I have never heard of. So they sent me another with the correct company this time, but deducting gross interest that I don't receive - all bank interest is paid with basic rate tax deducted (unless you've claimed exemption) and anyway I pay tax on interest at the higher rate via self-assessment. So hopefully third time lucky and 647L..
Posted by: Freddie 10 Mar 2010
I received a code BR notice in January, this basically means "Tax everything at the basic rate" where normally the first £6400 is tax free. I rang the revenue, and they had done this because they thought I had 2 jobs. A few days later, I received a new tax code - K2000, which meant they would tax me on 20000 more than I earn!! This would have left me about £200 per week worse off. Finally, they sent me a correct code. Hopefully my emloyers have received it too.
Posted by: George Thackray 16 Feb 2010
Is the current blunder yet another stealth tax. If you write to HMRC you have to pay postage, if you telephone them you have to pay for the call (plus of course the VAT), if you visit them you may have to travel the length or breadth of the country. It is time it was free of charge to contact any Government Office, irrespective of the means of contact.
Posted by: Mr E Brunger 27 Jan 2010
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