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Tuesday 25 September 2012

Frustrating UK tax quirks can easily mean missed mortgage payments

Anthony J. Evans is Associate Professor of Economics at our London campus. For the last year he has been writing a weekly column for City AM, a free business paper you can pick up from our reception every day. If you aren't able to get your hands on one on a Tuesday - the day Anthony's column is published - you can always catch up online via City AM's archive.

In today's column, Anthony shares his frustrating experience with the UK's Pay As You Earn (PAYE) tax system:

"In June, I made the fatal error of doing some additional work and received a bonus. HMRC treated the additional payment section of my payslip as the same as basic pay, and thus inferred that my annual salary had tripled. So it began taxing part of my earnings at a higher rate.

When I received my July pay slip, I was shocked to see that my tax rate continued to reflect this inference, even though my basic salary was back to normal..."

Read the full article in today's City AM (available in reception), or by clicking here.

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