HL Deb 04 November 2003 vol 654 c96WA
Lord Taylor of Warwick

asked Her Majesty's Government:

What steps they will take to remedy overpayment of income tax by taxpayers as a result of tax code mistakes. [HL5154]

Lord McIntosh of Haringey

Pay As You Earn collects tax on a provisional basis. If the Inland Revenue becomes aware during the year that the code is incorrect, and too much tax is being deducted as a result, the code can be changed. When this happens the Pay As You Earn system should ensure that the taxpayer is repaid any overpaid tax in their wages. If the Inland Revenue become aware after the end of the year that too much tax has been collected through PAYE, it will arrange for a repayment.