The Chartered Institute of Taxation are concerned that a large proportion of the 25 million tax code notices currently being issued by HMRC are wrong. They are requesting that HMRC launch a publicity campaign to make people aware of the potential errors.
In a press release, President of CIOT Andrew Hubbard stated: “Most people on PAYE are used to assuming that what the taxman sends them is correct. Many file away coding notices without even bothering to check them. But this year, many of them are being given wrong information too, and they could get a nasty shock when they open their April pay packet and see it is as much as a hundred pounds lighter than they are expecting.”
He continued: “The government should launch an urgent publicity campaign to highlight what has happened and tell people what they can do about it. They also need to add a specific warning about it to the majority of P2 notices – the letters containing tax code information – which have still to go out.”
Mr Hubbard concluded: “This comes at the worst possible time of the year for HMRC, whose enquiry systems are already stretched to capacity by people seeking advice ahead of the self-assessment deadline at the end of January. The new PAYE system is potentially very good and this is really just a teething problem – but a serious one that HMRC needs to warn taxpayers and their advisers about and help them resolve.”