HC Deb 28 October 2002 vol 391 cc607-8W
Mr. Coaker

To ask the Chancellor of the Exchequer what assessment he has made of the accuracy of the Inland Revenue in determining an individual's tax code; and if he will make a statement. [77020]

Dawn Primarolo

Under Pay As You Earn a code number is used to ensure that about the right amount of tax is deducted from pay according to an individual's known circumstances. And, at the end of the year, the Inland Revenue checks to see that the correct amount of tax has been paid. The Inland Revenue issues approximately 26 million notices of coding every year and each is based on the latest information available.

The Inland Revenue computer systems automatically determine a code number for each taxpayer prior to the start of each tax year. During the tax year, some code numbers are revised by staff on receipt of information from a taxpayer or employer. The Inland Revenue undertakes annual reviews to monitor the accuracy of work in the Department. This shows that coding accuracy in 2001–02 was 94 per cent.