Tax Coding Notices
Published February 2010
HMRC have refuted an allegation that difficulties with their new PAYE system have led to errors in a 'significant proportion' of tax code updates being incorrect. The Chartered Institute of Taxation (CIOT) claimed that 'wrong information is being sent out to huge numbers of people' and has called on HMRC to 'mount a publicity campaign to highlight' the alleged problem with new P2 notices.
HMRC denied such a measure was necessary and said that, while they expect some codes to be incorrect, the new National Insurance and PAYE system 'is working as it should'.
'It creates a single record for customers for the first time,' said a department spokesperson. 'This, together with increased automation compared to previous years, is resulting in many more people having more accurate codes than before.' He acknowledged that 'there will be cases when some people receive an incorrect coding notice or more than one coding notice for the same employment in a short time, because there is a discrepancy with what we hold on our records'.
mfg Solicitors LLP urge our clients to check their codes very carefully in light of this information, and if in doubt contact us to verify the information contained in their coding notices.
For more information, please contact our Tax Manager Steven Holden on 0845 55 55 321.
