Synopsis: More than one source of income? Have you paid the right amount of tax?

It has been reported in the Telegraph that up to three million people with more than one source of income are likely to face backdated tax bills of £2,000 per year due to errors by HMRC.

It appears that pensioners who have continued to work part-time after retirement are likely to be affected as well as veterans who have taken a civilian job after leaving the Armed Forces, but who also draw a military pension.

Some people who have more than one source of income have been allocated their tax-free allowance more than once meaning their issued tax code is incorrect and not enough tax would have been taken – and as a result receiving an unexpected tax demand later.

An HMRC spokesman said these problems should have ceased since the introduction of centralised record keeping in 2009, and added that the vast majority of those who pay tax through PAYE on either earned income or pension income pay the right amount of tax.


Those falling into this category should check their paperwork to ensure that they are not affected, especially given HMRC’s view that the onus is on the taxpayer to ensure that their tax codes are correct.

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