HMRC have again acknowledged there are problems with incorrect code notifications for 2010/2011.
It is recommended that all employees rigorously check notices to ensure they are correct. One alarming example is in respect of van fuel benefit. The correct charge for 2010/2011 is £550. However the notice of coding may show £1050.
HMRC have carried forward the charge for 2009/2010 of £500 and added it to the 2010/2011 charge.
There are other examples of incorrect codes which will mean employees are overpaying income tax. Now is the time to check code notices and notify HMRC if they are incorrect to enable the amendment to be made before 6 April 2010.
