How might the tax fiasco affect you?

Due to the incompetent introduction of a new computer system at HMRC last year, 5.7 million of us were issued with the wrong tax codes. So how could this affect you? Ruth Jackson explains.

The good news is that 4.3 million of us are owed money by HMRC. Sadly, 1.4 million of us also owe them. Due to the incompetent introduction of a new computer system last year, 5.7 million of us were issued with the wrong tax codes. That meant we either over or underpaid our taxes.

The system has now been fixed (or so we are told) and the various mispayments added up. Anyone who has been caught up in the mess will receive a letter not an email between now and January informing them of the mistake. Then if you're lucky you will get a cheque from HMRC for the amount other taxpayers owe you.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.