HMRC Error

codo

My daughter received an email this week from HMRC to say her tax code has changed.  She checked her online account to see HMRC have changed her place of employment to Lidl.  This is not the case.  She rang them today to say she was still working in her normal place of employment and the Lidl entry is incorrect.  When Lidl was input on her account her tax code changed to 990LX.  Since her call to them this morning, her tax code is 956LX.  They have adjusted her place of employment but said there needs to be an investigation and it could take upto 6 weeks to have her code changed to what it should be (1257).  Her current job is her only job.

Is there anything she can do? Surely she should not be penalised for their mistake.

eskbanker

She won't be penalised, in the sense that she'll pay the correct amount of tax over the course of the tax year - she may temporarily pay more while the investigation is completed, but it'll unwind itself after that.

codo

Thanks eskbanker, I do understand it will all balance out once her new code is sorted. It just means in the run up to Christmas she will be down in her take home pay at a time when she will need the money.

eskbanker

Yes, it's unfortunate, but should 'only' be in the order of £50/month - I can certainly see the argument that they should revert the tax code while investigating but am unaware of any way of forcing the issue.

sheramber

codo said:

My daughter received an email this week from HMRC to say her tax code has changed.  She checked her online account to see HMRC have changed her place of employment to Lidl.  This is not the case.  She rang them today to say she was still working in her normal place of employment and the Lidl entry is incorrect.  When Lidl was input on her account her tax code changed to 990LX.  Since her call to them this morning, her tax code is 956LX.  They have adjusted her place of employment but said there needs to be an investigation and it could take upto 6 weeks to have her code changed to what it should be (1257).  Her current job is her only job.

Is there anything she can do? Surely she should not be penalised for their mistake.

it may not be their mistake. A person could have given Lidl the wrong NI  number that happened to be your daughter’s number. 

Lidl could have made a mistake entering the NI number. 

That is what HMRC will be checking. 

codo

Thanks Sheramber, you are right. I hadn’t thought of that scenario.