A new computer system means that an incorrect tax codes may have been sent by HM Revenue & Customs (HMRC).

Taxpayers could be asked to pay up to £108 a month too much, which works out to £1,295 per year, say The Chartered Institute of Taxation (CIOT).The Revenue said it had no evidence of a widespread problem but advised taxpayers to check carefully.

The HMRC spokesman has advised that there is no immediate problem but we should all check just in case, “There will be some incorrect tax codes as there always are at this time of year,”

“But the coding notice tells people what the code relates to and tells them to contact us if it is wrong,” he added.

It is not clear how many incorrect tax codes have been sent out, however for most people this will come as a massive shock.

“Most people on PAYE are used to assuming that what the taxman sends them is correct,” said Andrew Hubbard of the Chartered Institute of Taxation (CIOT).

“But this year, many of them are being given wrong information, and unless they spot it and tell HMRC, their employer will receive the wrong information too.

The computer system which manages the codes started in the first week of January and will continue until the first week of March.

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