Employers warned to be vigilant over PAYE errors

  • By Josh Hall
  • 7 September 2010

Businesses are likely to face queries from employees over HMRC’s tax errors.

Some six million people are thought to have paid the wrong amount of tax, with the situation being blamed on errors at HM Revenue and Customs.

Almost 1.5 million people will be faced with new tax bills. The average bill will be around £1,500.

Those who have underpaid will have their tax codes adjusted in order that the money can be recouped during the next tax year.

The average person who has underpaid will therefore be more than £100 worse off at the end of each month next year.

Businesses are likely to face queries from workers over the discrepancy, and it is thought that many employees will presume that their reduced pay packets are the fault of their employer.

Employers are being encouraged to suggest that workers take up queries with HM Revenue and Customs. There is an appeals process for those who believe they have been unfairly treated.

The first 45,000 letters notifying taxpayers of an error will be sent out this week. Of these, around 15,000 will inform the recipient of an underpayment.

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