Govt gives further advice on 'tax returns glitch'

Date: 28th January 2009

The government has provided advice for those affected by the recent tax returns glitch, which allowed users to pay owed taxation from last year using a 2009 PAYE code.

According to HM Revenue and Customs (HMRC), the option should have been disabled from December 30th.

The department has now agreed to allow taxpayers to 'code out' underpayments until the end of this month, but only if they get in contact directly.

HMRC said in a statement: "If customers use this option believing that having their underpayment coded out is still a valid option, we will show any underpayment in their PAYE tax code if they contact us and ask us to do so."

It added that after February 9th the department would write to taxpayers who had not already been in contact.

"None of our customers will be unfairly disadvantaged," it concluded.

Small businesses - such as limited companies - have only three days to complete their self-assessment tax returns, as all submissions are due by January 31st.