HMRC code mix up may not be fixed until April

Date: 8th February 2010

The problems with HM Revenue & Customs' (HMRC) new computer system, which could see a number of tax codes issued in error, may not be fixed until after tax deductions start in April, it has been claimed.

According to the Low Income Tax Reform Group (LITRG), "unexpected errors" with the information processed by the computers may not be resolved before new tax codes are issued.

LITRG has warned that a "significant number" of the million of tax codes that HMRC will issue will now be "incorrect".

The organisation has advised those in receipt of new tax codes to "check them carefully".

"Unless the errors are identified and rectified in time for the new tax year many will be paying the wrong amount of tax from April," the group said in a statement.

"We have therefore had detailed discussions with HMRC to assure ourselves that they are doing everything possible to ensure that this does not happen. But they have limited resources and there can be no guarantees."