ACCOUNTANTS Baker Tilly are warning company car drivers to check their PAYE tax codes for 2004/05, as they could be wrong in some areas.
Many drivers will not be paying enough tax, but will have this tax collected from them at a later stage.
This follows Inland Revenue computer problems last year when many drivers found their car benefit had been incorrectly estimated at 15 per cent of the list price of their car, leading to under-payment of tax.
Tax partner Dianne Simpson-Price said: "Once again, apparently due to computer problems at the (Inland) Revenue, in some areas of the country people may not be paying enough tax.
"This year, the Inland Revenue computer appears to have issued new codes to many company car drivers for 2004/05, showing the 2003/04 car benefit.
"This will result in an underpayment if it isn't corrected.
"To rectify this, the (Inland) Revenue will rerun tax codes at some point and people will then find their tax code has changed, so that the Inland Revenue can collect this extra tax."
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