Pensioners are the latest victims of tax code blunders.
HM Revenue & Customs is issuing incorrect tax codes which mean that, from the start of the new tax year, they might be paying the wrong amount of tax.
More than 25 million tax codes are being sent out over the next few weeks and many, particularly those sent to pensioners, are wrong.
The Low Income Tax Reform Group has seen several common errors affecting pensioners’ tax coding notices.
John Andrews, of the group, says: ‘I think the problems could affect hundreds of thousands of people.’ Problems include.
As well as pensioners, people particularly at risk of getting a wrong code include those who have benefits from their employer such as cars or medical insurers, as there are reports that these benefits are being taxed twice.
Those who have changed jobs recently are also being urged to check their codes, as the Revenue computer system may incorrectly assume they have two jobs.
HMRC says the problems occurred because it was bringing 20 computer systems into one and some old data may have re-emerged and is being treated as current.
It says that taxpayers should contact their tax offices to correct information and that staff previously working on self-assessment have now been moved over to help rectify matters.
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