TaxPersonal TaxWarning over wrong tax codes

Warning over wrong tax codes

Thousands of employees could unwittingly be paying too much tax each month due to incorrect tax codes, Grant Thornton has warned.

Grant Thornton told employees to double check their tax codes, emphasising that taxpayers should not assume the Inland Revenue will have allocated the correct tax code.

Mike Warburton, senior tax partner, said: ‘Many people tend to believe that the Revenue will have allocated the correct tax code to them, and that the correct tax will be deducted. However, the intracacies of the tax system may mean that it is worth double checking the calculations.’

The warning comes on the back of growing complexities in the UK taxation system and the general public’s lack of knowledge about taxation. The Revenue paid out £1.8bn in the tax year 1998/1999 in tax rebates, according to a recent report in a national newspaper.

‘Now that we are truly underway into the self-assessment regime, it is vital that employees and pensioners alike understand how their tax is worked out. …, the system is so complex that it is necessary to check an recheck the figures and estimates,’ added Warburton.

Related Articles

HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

5m Emma Smith, Managing Editor