HUNTINGDON-based chartered accountants George Hay are advising anyone who receives a letter saying they have paid an incorrect amount of tax to seek professional guidance if they are unsure of their tax liability.

HUNTINGDON-based chartered accountants George Hay are advising anyone who receives a letter saying they have paid an incorrect amount of tax to seek professional guidance if they are unsure of their tax liability.

HM Revenue & Customs (HMRC) has found that nearly six million people in the UK have either underpaid or overpaid tax via the Pay As You Earn (PAYE) system during the last two years.

For 4.3 million people, this will mean a rebate of on average £418, while 1.4 million others will owe an average of £1,500 each. The first 45,000 affected taxpayers received letters from HMRC this week, informing them that they were either due a rebate or owed more tax.

Discrepancies arise when the amounts deducted in tax and National Insurance by employers using PAYE do not match records held by HMRC.

Barry Jefferd, tax partner at George Hay, said: "People trust that they are paying the right amount of tax through PAYE, but the system, which has been in place since the 1940s, can struggle to cope when they change job, have more than one job at once or because their employer is simply using the wrong tax code.

"If you have received one of these letters but are unsure of your tax liability, then we can help you check that you are paying the right amount, including checking you have the right tax code.

"We also offer an outsourced payroll service to businesses and can calculate PAYE and highlight any tax issues that may arise."

CONTACT: Barry Jefferd on 01480 426500 or e-mail barry.jefferd@georgehay.co.uk. George Hay is at St George's House, George Street, Huntingdon PE29 3GH.