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Follow on Google News | Tax code problems at HM Revenue and Customs (HMRC)HMRC will issue 25 million tax code notices this year. This is nearly double the amount that was sent last year. Clearly many of these are wrong.
By: Jungle Media Ltd Your tax code is the information that tells your employer how much income tax they should deduct during the financial year. Contrary to what many people believe, for those on PAYE, it is the employee’s individual responsibility to check that their tax code and subsequent monthly deductions are correct, not the responsibility of their employer to get it right. You can also visit (HMRC) online at http://www.hmrc.gov.uk for further information on tax refunds and how to claim. If you do not have the time to process your claim yourself, websites like http://www.payeright.co.uk will do all the work on your tax refund claim for you on a “No refund – no fee” basis. A report dated 25/01/10 by Michael Woolley of the CIOT warns employees that a new (HMRC) computer system may have generated incorrect tax codes which are due to be applied in the coming tax year, the potential is that if the errors remain undetected the pay packet for a basic rate tax payer would be cut by about £108 per month or £1,295 a year. The website http://www.payeright.co.uk states that 1 in 3 people are due a tax refund. Many people search online for help with tax refunds and how to claim. The (CIOT) explained that the error stems from a failure to make a distinction between current and previous employment, subsequently releasing codes based on a person holding two jobs simultaneously. This resulted in the system allocating a code where the personal tax allowance is split between two jobs or where the entire allowance is allocated to a job that no longer exists. Only in a very small number of cases the personal tax allowance has been removed altogether assuming the persons income to be in excess of six figures. The (CIOT) reports that a HMRC spokesman said "There will be some incorrect tax codes as there always are at this time of year but the coding notice tells people what the code relates to and tells them to contact us if it is wrong," “The new system is improving the accuracy of the PAYE so that more people than ever before are correctly taxed". The (HMRC) also reported that they do not anticipate a widespread problem but they have advised taxpayers to make careful checks. You can also visit (HMRC) online at http://www.hmrc.gov.uk for further information on tax refunds and how to claim. Or if you want somebody else to do the work visit http://www.payeright.co.uk where it only takes 60 seconds to complete an online questionnaire and find out if you are due a tax refund. Checking Your P2 Coding Notice: It is important that people on PAYE should check their P2 Coding Notice carefully. Prior to the start of the new tax year, people who are on PAYE will receive a P2 notice from HMRC which shows the tax code which has been allocated to them, and which information will be sent to their employer, to be applied in April, provided they are not notified of corrections that need to be made. Some people may receive 2 or more coding notices which are different. If you find that you have been affected by the error and been allocated a tax code which appears to be incorrect, you should speak directly to HMRC so that the error can be rectified and a correct code issued to you and your employer. As this problem indicates, there has never been a better time to check that your tax affairs are in order. It is a little known fact that in the UK, 1 in 3 people on PAYE are owed a tax refund due to the issue of an incorrect tax code or clerical error. In addition to visiting http://www.hmrc.gov.uk if you think you may have been paying too much tax, but do not have the time to process your application there are companies like http://www.payeright.co.uk who offer a ‘no refund, no fee’ service to do all the work on tax refunds for you. They will check whether you are owed any tax back, calculate the value of your tax refund and arrange with HMRC to have it paid back to you. Tax refunds can be backdated up to 6 years where applicable. PAYEright.co.uk states the average tax refund is £800, so it is definitely worth checking your tax code as soon as possible. # # # http://jungle- End
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