Contractors could be victims of HMRC tax coding error

Monday 13th September, 2010
Industry news
Six million people paid incorrect tax in the two tax years to March 2009, HM Revenue and Customs (HMRC) has announced and the 1.45 million people who HMRC say underpaid will be asked to pay a total of 2 billion Pounds in arrears.

According to British daily newspaper The Independent, people who are likely to be affected are those who changed jobs, started a new job and had an emergency tax code, only worked for part of the year, had more than one job at the same time, were made redundant or became self-employed.

Therefore, many contractors who started their contracting career between April 2007 and March 2009 could be receiving unpleasant letters from HMRC. So too, could contractors who moved around and had various sources of income in that time, including those who have had relationships with several agencies where PAYE has been paid on their behalf.

While options are open to anyone who does get an arrears demand from the HMRC to argue their case, the onus for the self-employed and even for contractors operating as a limited company, is always on supplying correct figures to HMRC in the first place.

If you're unsure of your options and would like some advice our Personal Tax Team are happy to help, please contact them on 0800 197 6516.