HMRC urged to rectify tax code issues
5th February 2010
Many people assume that what the taxman sends them is correct and therefore file away coding notices without checking them. However HMRC is issuing around 25 million tax coding notices this year which is double of what was issued in 2009 this is due to wrong information being sent out to a large number of individuals as a result of an error in a new PAYE system.
If the situation is not rectified in the next few weeks wrong information will be distributed to large numbers of employers and pension companies which will lead them to deduct the wrong amounts of tax from employees and pensioners.
Recently the Chartered Institute of Taxation expressed its concern about the situation. They have urged HMRC to issue a statement to the public clearly highlighting the extent of the problem and it could be solved. They have called for a public relations campaign and advertising to highlight the problem and to explain to the public how they can check their code to ensure it is correct.
