- HMRC is set to review 107,000 tax cases from the 2025-26 tax year following complaints over a technical system error that could leave taxpayers overcharged.
- The ordering glitch in the tax system incorrectly calculates tax-free allowances, including personal, dividend, and savings allowances, resulting in higher bills.
- Although the issue was first acknowledged by the tax authority in 2021, the system error persists and requires manual checks to adjust affected calculations.
- HMRC expects the number of calculations requiring manual review to fall to around 20,000 next year as tax rules and rates change.
- Tax experts have criticised the ongoing flaw, saying that any overcharged amount is significant to individual taxpayers, regardless of the sum.
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