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Thursday
Sep162010

Millions in Incorrect Tax Payments are Being Collected by HMRC

A new computer system seems to be largely at fault for the figures. It was designed to make PAYE processing and tax codes easier to process. But since human eyes are checking fewer tax codes there have been far more errors than were previously expected.

As an accountant I always encourage people to check their own tax codes when such notifications come through to them. We regularly check the codes when our clients are notified of them, and we often spot errors that a client would not necessary realise are there.

Needless to say it can be worrying if people are paying more tax than they need to. If they do not know this is the case, they won’t apply for a refund. Conversely if they pay too little tax they could suddenly find they have to pay their dues as a result.

It is clear evidence that no one should assume their tax code is correct when they receive it. Always check your code and if you are unsure whether it is correct or not, you can contact us here at St Matthew for further confidential advice.

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