Tax system failure proves it IS taxing

There’s an advert of TV at the moment, saying that “tax doesn’t have to be taxing”. Its purpose is to prompt people to return their tax forms or pay their tax bills by 30 January.

And then you read that incorrect tax codes may have been sent out because of a new computer system!

The Chartered Institute of Taxation (CIOT) reckons that taxpayers might have to pay up to £108 a month too much.

HMRC said it had no evidence of the problem being widespread, but advised taxpayers to check carefully.

The CIOT is urging the Revenue to launch an advertising campaign to alert taxpayers to the problem.

Apparently, the problem lies in a new computer system designed to process the collection of income tax via the PAYE system, together with national insurance contributions.

However, the CIOT said the system was not distinguishing between current jobs and old ones, meaning that tax codes were being calculated on the assumption that some people had more than one job. The result is that some people are being taxed too much by their current employer.

It just goes to show what we all already know.

Tax IS taxing.