Workers Urged to Review Tax Codes After £3.47bn Overpayment to HMRC
# Workers urged to check for tax code as £3.47bn overpaid to HMRC coffers
Britons are being alerted to scrutinise their tax codes, as incorrect assessments have led to an astonishing £3.47 billion being overpaid to HM Revenue and Customs (HMRC). Many employees are essentially losing money because HMRC often relies on estimated earnings when determining tax obligations.
This situation arises when individuals have non-PAYE (Pay As You Earn) incomes or receive company benefits that HMRC does not fully account for. Neela Chauhan, a partner at UHY Hacker Young, emphasised the gravity of the issue: "Millions of people are paying the wrong amount of tax simply because HMRC is almost guessing what they earn."
It is essential for workers to regularly review their payslips and tax codes to ensure they reflect actual earnings accurately. An incorrect tax code can lead to either underpayment or overpayment, which can create financial difficulties. Taxpayers should be proactive in checking their codes against their income to rectify any discrepancies.
If a tax code appears incorrect, it is crucial to contact HMRC promptly for clarification. Keeping informed about such matters can protect individuals from potential financial losses and ensure that they are taxed fairly according to their genuine income levels.
This report is for informational purposes only and is not financial advice.