Kudos to HMRC for not only screwing up the tax codes of the good people of Scotland, but also for doing the same in Wales.
WalesOnline reports that people across Wales have been paying the wrong rate of income tax because of an HMRC blunder.
Some people in Wales have had a Scottish tax code applied to their income tax which is a higher rate.
The Welsh Rates of Income Tax (WRIT) was introduced in April 2019. Welsh taxpayers are assigned a C prefix in their tax code denoting where they live.
HMRC has admitted applying an S prefix, so some people meaning they are paying Scottish rates.
It is not yet known how many people are affected.
The Chair of the National Assembly’s Finance Committee, Llyr Gruffydd AM said:
"HMRC’s admission is deeply disappointing as this Committee was repeatedly given assurances that mistakes like this would not happen.An HMRC spokesman said:
We raised concerns about the flagging process for identifying Welsh taxpayers during our inquiries into fiscal devolution and the Welsh Government’s draft budget.
On each occasion we were told the matter was in hand and the lessons from the devolution of income tax powers to Scotland, where there were similar issues, had been soundly learned and would be put into effect.
We are seeking an immediate explanation of how this has happened and will be asking representatives from HMRC to appear before this Committee in the near future.”
"We have been made aware of an error in the application of new income tax codes for Welsh taxpayers by some employers which has meant some taxpayers payed the incorrect amount of tax in April.
It is the responsibility of the employer to apply the tax codes provided by HMRC and we are working closely with the employers affected and providing support as they investigate and correct the problem."
They were warned that this would happen!
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.
Ken Frost has negotiated a 10% discount on any polices that may suit your needs.
However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.
What is Solar Tax Investigation Insurance?
Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Solar Tax Investigation Insurance
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"