HMRC PAYE Tax error
A new computer system at HMRC has highlighted that over 6m people have previously been undercharged in calculating their tax bill. The good news is that there are also over 4m people who are due a refund.
HMRC have started sending out letters so expect to find out soon if you owe money or are owed money!
HMRC are expected not to chase debts of less than £300 but the average amount due are reported to be just under £1,400. These will be reclaimed by amending your next year's tax code. If the amount is over £2,000 then you will be asked to repay it as a lump sum.
The average refund is just £420.
If you receive a letter it's important to check the details quoted in the letter.