Tax shock for over a million people HMRC to contact 1.2m who underpaid tax
04 October 2011
HMRC will be sending out letters to up to 1.2 million employees over the next three months telling them that they haven't paid enough tax for the tax year ending in April 2011.
Each year HMRC carries out a conciliation of UK taxpayer's pay-as-you-go (PAYE) records to check that those who pay their tax through the PAYE system have paid the correct amount.
Overpayers already contacted
Letters have already been sent to those who have overpaid tax for the same tax year. Around 3.5 million taxpayers are due refunds averaging £340.
Melanie Green, Principal Researcher at Which? said: 'If you receive a tax underpayment letter the first thing to do is to check the tax underpayment calculation. You should receive notes from HMRC explaining how to do this'
'If the underpayment is less than £2,000 it will be collected through an adjustment to your tax code over the 2012-2013 tax year. If you think paying it back over the course of a year would cause you financial difficulty, get in touch with HMRC. It may allow you to spread the repayment over two or three years.'