[Scotland] HMRC apologises for tax code error that led to underpayments

In the UK, HMRC has apologised for an error which meant some Scottish taxpayers were given English tax codes, Mirror reports.

The issue affected around 30 residents living in a new estate in Mauricewood, north of the Scottish town Penicuik. 

One resident, who had reportedly moved from Edinburgh, told the Mirror that the mistake meant they had underpaid their tax and now needed to pay an extra £10 a month to make up the difference.

Following their move to the estate, the resident noticed a change in their tax code because it didn't have the Scottish "S" at the beginning. The missing letter meant HMRC would consider the tax as being paid in England. After making enquiries, the individual realised that other people on the estate had the same issue.

HMRC reportedly said it would be contacting anyone who has underpaid or overpaid due to the error. The resident stated that they wanted to make the issue public and reported the issue to The National amid concerns that it could potentially be more widespread - across the English/Scottish border - leaving the Scottish Government "short-changed" on income taxes. 

HMRC, however, announced that the Scottish Government tax take had not been impacted. 

Despite both countries being in the UK, Scotland and England have different rates of income tax meaning that - depending on earnings - people pay more or less tax based on where they live.

According to the Chartered Institute of Taxation, if a worker was earning £27,850 a year in 2023 they would pay the same amount of Income Tax in both Scotland and England. But those earning less would pay less tax in Scotland than in England and those earning more would pay more.

HMRC reportedly said that the issue has now been resolved and those affected contacted to learn that they either owe money or are due a tax rebate for overpaying.

An HMRC spokesperson told The Mirror, “We’ve corrected the tax codes of residents from the estate and we apologise to those affected. Any overpaid or underpaid tax will be refunded or collected via PAYE as normal. People can check their code on the free HMRC app and online and if they think they’re on the wrong tax code, they should tell us by using their online personal tax account.”

Source: Mirror

(Link and quote via original reporting)

In the UK, HMRC has apologised for an error which meant some Scottish taxpayers were given English tax codes, Mirror reports.

The issue affected around 30 residents living in a new estate in Mauricewood, north of the Scottish town Penicuik. 

One resident, who had reportedly moved from Edinburgh, told the Mirror that the mistake meant they had underpaid their tax and now needed to pay an extra £10 a month to make up the difference.

Following their move to the estate, the resident noticed a change in their tax code because it didn't have the Scottish "S" at the beginning. The missing letter meant HMRC would consider the tax as being paid in England. After making enquiries, the individual realised that other people on the estate had the same issue.

HMRC reportedly said it would be contacting anyone who has underpaid or overpaid due to the error. The resident stated that they wanted to make the issue public and reported the issue to The National amid concerns that it could potentially be more widespread - across the English/Scottish border - leaving the Scottish Government "short-changed" on income taxes. 

HMRC, however, announced that the Scottish Government tax take had not been impacted. 

Despite both countries being in the UK, Scotland and England have different rates of income tax meaning that - depending on earnings - people pay more or less tax based on where they live.

According to the Chartered Institute of Taxation, if a worker was earning £27,850 a year in 2023 they would pay the same amount of Income Tax in both Scotland and England. But those earning less would pay less tax in Scotland than in England and those earning more would pay more.

HMRC reportedly said that the issue has now been resolved and those affected contacted to learn that they either owe money or are due a tax rebate for overpaying.

An HMRC spokesperson told The Mirror, “We’ve corrected the tax codes of residents from the estate and we apologise to those affected. Any overpaid or underpaid tax will be refunded or collected via PAYE as normal. People can check their code on the free HMRC app and online and if they think they’re on the wrong tax code, they should tell us by using their online personal tax account.”

Source: Mirror

(Link and quote via original reporting)