Warning to taxpayers to check tax codes

Millions of people could pay more tax than they should from April.

This week more problems have emerged with a new computer system which tells employers how much tax to deduct from our pay.

Her Majesty's Revenue & Customs has already admitted that many of the 25 million tax codes which are currently being sent out could be wrong.

But, this week, more glitches have come to light with the computer programme that now produces them.

Revenue insiders have told Money Box that in some cases it is double-taxing the value of benefits like a car or health insurance provided by employers.

It has also emerged that married couples and civil partners aged 76 or more could lose an allowance worth nearly £700.

And more than half-a-million people, who started claiming their state pension this tax year, could automatically have too much tax deducted from their income next tax year.

The Revenue says it has recently fixed problems including those with state pensions and benefits in kind, but admits it is still working to resolve remaining issues.

Presenter Paul Lewis hears John Whiting from the Chartered Institute of Taxation.