Are you one of 1.5 Million employees affected?

Good news and bad news! From Morris and Co

An audit carried out by a Treasury department has huge blunders in the calculation of tax owed under the PAYE system which means that 1.5 million employees have paid too little tax amounting to an average tax bill of £1,400 each. HMRC was also found to have over deducted tax from 4.3 million employees which averages out at a tax refund of £400 each.
HMRC have announced that letters will be issued to those employees affected by this incompetence between now and Christmas with tax refunds paid by cheque and tax owed collected via the PAYE system by adjusting individual tax codes.

The HMRC tax error could hit those on average earnings hard as a £1,400 deduction in NET pay taken over a tax year would amount to a deduction of £116 per month.
If you are in receipt of a tax demand then the best strategy is to do your own calculations as HRMC is likely to get it wrong again for many people. Even if the calculation does appear to be correct then still appeal the decision, stipulating your personal circumstances which may result in the tax debt being written off.

If you would like Morris & Co to look into your tax demand or even check over your PAYE figures for the tax year (2009/10) then our Payroll Bureau would be more than happy to confirm if you have paid the correct amount of tax against your earnings.

Please contact payroll@moco.co.uk by email or phone 0151 348 8430 and ask to speak to Allan Jones – Payroll Supervisor who will be able to assist you.

Morris and Co.

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