More worrying details have come to light regarding the HMRC’s tax code blunder.

In a report by the BBC, revenue employees stated that the new system, in numerous cases, cannot be relied upon to generate the correct tax codes and the general feeling is that this situation is getting worse, not better.

An employee, who wished to remain anonymous, claimed that the testing of the new system was inadequate – it stopped short of issuing new tax codes, the point at which the system has gone wrong.

The Revenue denied this claim. It said: “Annual coding was subjected to rigorous testing, with … Continue Reading

With the 31st January tax return deadline looming ever closer, employees may be faced with an additional headache. According to the Chartered Institute of Taxation (CIoT), the taxman has issued 25 million incorrect PAYE tax codes for 2010/2011 – double that of the previous year.

Blamed on HMRC’s new computer system, the blunder could see individuals hundreds of pounds short, depending on the level of their earnings.

Andrew Hubbard, president of the CIoT, warned advisors and their business clients to check their new codes. “Most people on PAYE are used to assuming that what the taxman sends them is correct, (filing) away … Continue Reading