Up to three million people with more than one source of income may get backdated tax bills of £2,000 per year because of errors by HMRC.
Among those most likely to be affected are veterans who have taken a civilian job after leaving the Armed Forces, but who also draw a military pension and pensioners with two pensions and those who have continued to work part-time after retirement, the Telegraph reported.
Problems arise because tax offices aren’t sharing information about taxpayers’ incomes on a central database, the newspaper reported.
People with more than one income are being given their personal tax free allowance a number of times. Often the mistakes are discovered by HMRC years later, which causes unexpected tax demands.
HMRC told the Telegraph that the problem was not “systematic” and that the vast majority of tax codes are correct. But it said that millions of people have more than one code, so they could be affected.
If you have more than one source of income we suggest you check the tax codes used against each payment you receive. If you have any doubt as to whether your tax codes are correct we’d be happy to carry out a quick check on your behalf.