HMRC has recently indicated that income tax of more than £1.3bn has been incorrectly taken from workers for the tax year 2011/12.
Those affected will start to receive letters from next month advising of any over/underpayments of tax and how to rectify the situation. Current estimates show that between 2.1m and 3.5m paid too much tax in 2011/12, averaging £379 per taxpayer.
On the flip side, another 1.2 – 1.6m have underpaid by an average of £537.
It is hoped that the new RTI PAYE system will iron out these under/overpayments and that taxpayers end the year having paid the correct amounts.
The problems often arise when individuals change jobs or have more than one job.
To reclaim tax as an employee, here’s how.