Tax blunder continues as employees miss out on rebates

Hundreds of thousands of taxpayers are in danger of missing out on tax rebates due to the lack of accurate contact data held by HM Revenue and Customs.

Following a government computer glitch, 4.3 million employees were overcharged during the last two financial years via the Pay As You Earn (PAYE) scheme. These employees have been identified and the HMRC is in the process of sending out refund cheques.

However, personal finance website has discovered this week that HMRC is sending important correspondence to incorrect households due to a lack of accurate address information.

It is thought that the HMRC has failed to update home addresses for employees who have moved, despite this information appearing on the documents it receives from employers.

There are also an additional 1.4 million people who have paid too little tax as a result of the computer glitch and are due to repay on average £1,400 each.

The concern is that these individuals will be charged for late payment should they fail to receive HMRC correspondence. is advising people who have moved in the last few years to contact the HMRC or visit the Revenue website.

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