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Contractor accountants warned about tax code errors

Contractor accountants warned about tax code errors

HMRC is urging sole traders and contractors, as well as employees, to get in contact with their local tax office if their tax code looks unusually low or high.

Contractor accountants should also be vigilant, however it is unlikely that they would be able to spot all errors across their client base. Therefore they should advise contractors and sole traders to check their own tax codes where possible.

HMRC recently updated it’s PAYE and NIC system which is believed to have caused the errors.

Most people will have a personal allowance of £6,475 in the tax year covering 2010 and 2011. Those with an incorrect tax code will be paying the wrong amount of tax from the start of the new tax year from April 2010.

If you believe your tax code may be incorrect, have a look at HMRC’s notes included with the coding letter or go to the HMRC website for information. If you still believe there is an error, HMRC have opened an advice line 0845 3000 627 specifically for those with a tax coding issue.

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