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Workers warned over tax code problem

Workers warned over tax code problem

Category: Money

Updated: 15/04/2010
First Published: 15/04/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Workers have been urged to take extra care when checking their April payslips, to make sure they are paying the correct amount of tax.

HMRC has admitted that some workers might not have sent the same PAYE code number as the one sent to their employer or pension provider for the 2010/11 tax year.

Although work by HMRC to resolve the problem is under way, the Low Incomes Tax Reform Group (LITRG) says that the first opportunity many people will have to check whether they have been affected is when the April payrolls are processed.

Those people who do not normally get payslips when they are paid have been told to take particular care.

Problems might potentially have occurred because:

• incorrect codes have been received but not understood by employees and pensioners, and therefore not put right; or
• new codes have not been issued in cases where there should have been a change; or
• the individual has received a code but their employer or pension provider has not received one (or not the same one) and therefore deducts an unexpected amount of tax.

People who check their coding notices and either do not understand them or think they might be wrong, have been told to contact HMRC as soon as possible.

Likewise, those people who do not receive a coding notice for each pension and/or job should also phone HMRC and ask for one.

People happy that their code is correct have been told to check that the same code number is being used by their employer or pension provider.

Pensioners who do not receive a regular payslip from their pension company have been told to call them to check what code they are using.

Another option for those without a payslip is to check their bank statements to see how much they have been paid in April.

An unexpected and substantial change from the previous month is a good indicator that there has been an error.

The number on which to contact HMRC is 0845 3000 627.

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