It has been announced today that HM Revenue & Customs (HMRC) have over charged a cool one million people with regards to their tax returns.  A total of £157 million was over paid during the tax year 2006 - 2007, with many of the most vulnerable in society being hit.

As if that was not bad enough they have also announced that £125 million of tax was under paid, due to incorrect demands from HMRC and a breakdown in their processing systems. All in all a net £32 million was demanded in error, but how can this really happen?

The problem seems to have occurred more often when a person has a “complicated” life, i.e. they may have two jobs, they may be personable age, but working, etc.  It seems as though the processes instigated by HMRC have not been robust enough to cope with the varying lifestyle of so many today.  As we all know, the authorities are quick enough to claim back any tax which they are due, but it is a different story claiming back tax which has been over paid.  If a system can actually over charge in error, what chance have we with regards to an automatic reimbursement?

It is therefore essential that you have the correct tax code for your situation, and if your circumstances do change, let the authorities know as soon as possible. Why not check to see if you are paying the correct tax now, at :-

Check Your Tax Code

If you believe that your tax code is incorrect and you have over paid tax in recent years, there is a simple complaints procedure which could result in a substantial return for you.