HMRC Mistakenly Issues £800 Tax Bills Due to Salary Overestimation

On May 31, 2024, taxpayers reported on Twitter, now X, that HMRC had issued incorrect tax bills due to overstating their income. One individual, whose actual salary differed significantly from the £76,000 recorded by HMRC, expressed frustration at receiving an £800 bill.

A taxpayer, identified only as Davek, detailed his situation on the platform. He noted incorrect salary estimation and difficulty reaching a human representative through HMRC’s automated services. Davek indicated his tax code had been erroneously set to 1304MX following a job change, despite having the marriage allowance and updating his income details.

In response, HMRC inquired whether Davek had a Personal Tax Account and asked about his tax code and employment status within the tax year. The conversation revealed that Davek received two payments in the same pay period from his old and new employers, which may have contributed to the issue.

The exchange highlighted further complications, such as the absence of a complete P45 from one of the employers, hindering accurate tax code application. HMRC continued to request specific details to resolve the matter.

Key Points:

  • Who: HMRC and affected taxpayers, specifically an individual named Davek.
  • What: Issuance of £800 tax bills due to income overestimation.
  • When: Situation reported on May 31, 2024.
  • Where: United Kingdom, reported via Twitter (now X).