According to reports, over the past two years around £2bn was underpaid via the PAYE system, with approximately 1.4 million people owing an average of £1,500 each. These reports also show that around 4.3 million people are due a tax rebate as roughly £1.8bn has also been overpaid. Interesting !

The problems seem to arise when the information held on HMRC records does not match the amounts deducted in tax and National Insurance by employers using the PAYE system.

Unless a tax return is requested by HMRC this error may not be detected.

The errors seem to occur when an individual has either changed jobs or they have more than one source of income. In some cases it could simply be down to the fact that their employers are using the wrong tax code.

Is your tax correct?

For more information on your tax and accounts please contact Chris info@handonaccounting.co.uk