Specialist Tax News

Tax Code Numbers Update

We told you in the last edition that some of the 2010/11 Notices of Coding have errors admitted by HMRC as a result of using a new database which creates a single record for all employees even if you have more than one source of earnings or pensions.

Whilst steadfastly refusing to say how many of the 25 million tax codes issued are likely to be wrong, HMRC have now admitted that the errors include double-taxing your benefits (car or health insurance for example); miscalculating the private fuel benefit of a company car (only applies of course if you do have any private use fuel provide by your employer); not giving the age-related enhanced personal allowance; underpaid tax from earlier years incorrectly being coded out in 2010/11 even where it has already been paid.

Leave a Reply