Oh dear it seems that, despite the fact that Pacesetter is meant to solve all of HMRC's problems, HMRC is still having problems with PAYE codes.
In fact, according to UHY Hacker Young, the problems are so widespread that one in four taxpayers may be presented with the wrong tax bill with pensioners and higher-rate taxpayers most at risk (seemingly two thirds of pensioners on the wrong tax code overpaid their tax).
However, it's not all bad news:
1 RTI, which is guaranteed to be up and running on time, will solve all of this, and
2 HMRC don't recognise the figures used by UHY
A spokesman for HMRC is quoted in the Telegraph:
“We don’t recognise any of the numbers cited.Please feel free to comment if you have been incorrectly coded. In the event the list is long enough I will send it to UHY and HMRC.
Accuracy of PAYE coding notices on the basis of information we hold is 98 per cent.
Most people are paying the right tax.
If any agent has information about their clients’ changed circumstances they should let us know.”
Tax does have to be taxing.
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