Following revelations that up to 6 million people have paid the incorrect amount of tax through their PAYE code, HM Revenue and Customs has begun sending correction notices to some 1.4 million people.  The unlucky  minority have underpaid their tax, and will need to make up the difference.

Between September and Christmas, HMRC says about 4.3 million taxpayers will receive tax refunds after over-paying through the PAYE system.

The errors came to light following the installation of a new computer system and a reorganisation of the way in which employee information is processed by HMRC.    Previously the system was centred on employers which meant if a person had more than one job their information might be kept in several different locations.  As work patterns have changed and part time and multi employer working has become more the norm, the system has had to be changed.

Any under or over payments will be rectified over the next 12 months by varying the individual’s tax code.