CIOT call for action over tax code problems

Date: 25th January 2010

Thousands of people risk paying hundreds of pounds in unnecessary tax unless HM Revenue & Customs (HMRC) comes forward to highlight problems in the new PAYE system, it has been claimed.

According to the Chartered Institute of Taxation (CIOT), HMRC will issue 25 million tax codes this year.

As a result of a new PAYE system, many employees with one job will receive two codes and have too much money deducted, the CIOT claimed.

The organisation has now called on HMRC to issue a clear public statement detailing the issue and explaining how they intend to deal with it.

HMRC is also being urged to provide additional staff to deal with any increase in enquiries and launch a publicity campaign telling those who are affected how they can claim the money back.

Andrew Hubbard, president of the CIOT, said: "Most people on PAYE are used to assuming that what the taxman sends them is correct. Many file away coding notices without even bothering to check them.

"But this year, many of them are being given wrong information, and unless they spot it and tell HMRC, their employer will receive the wrong information too, and they could get a nasty shock when they open their April pay packet and see it is as much as a hundred pounds lighter than they are expecting."