According to new research, HMRC have made a number of tax code errors since they introduced their computer system in 2009.
The errors have meant that one in three taxpayers have not been paying the right amount of tax. One of the most common mistakes made by HMRC is failing to tax employee benefits, such as company cars and private health, resulting in millions of people underpaying their tax by thousands of pounds because they have been given the wrong tax code.
A similar research was carried out in 2012, analysing millions of PAYE tax codes and it found that about a quarter were incorrect. Sadly, a year on the amount of errors have increased to around 37%.
These mistakes have caused problems for many, as months down the line they have been hit with an unexpexted taxbill and asked to repay a significant amount. For others the mistakes have lead to tax rebates being given.
A spokesman for HMRC said: “The numbers being cited are not correct, accuracy of PAYE coding notices is now 99pc. The vast majority of people are paying the right tax at the right time through PAYE.”