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Six million people in UK have overpaid or underpaid tax

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Nearly six million people in the UK are to be told they have paid the wrong amount of tax.

About £2bn has been underpaid via the Pay as You Earn (PAYE) system in the past two years, with about 1.4 million people owing an average of £1,500 each.

But £1.8bn has also been overpaid and some 4.3 million people will get a rebate because they have paid too much.

HM Revenue and Customs (HMRC) said the "overwhelming majority" of PAYE contributions were correct.

Paul Lewis, presenter of Money Box on BBC Radio 4, says that there will be an appeals process for people affected by the errors.

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