As people start to receive notification of their tax codes for 2023/24, survey of mid-market businesses by BDO showed that 99% of employers have experienced issues with their employees’ tax codes.

More than half of employers (51%) said their staff did not understand what their tax codes mean.

The survey also found that almost the same proportion of respondents (49%) said that employees had complained about coding errors which in some cases had led to them receiving catch-up bills for unpaid tax in later years.

Almost a third (31%) pointed to problems relating to delays in the time it took to rectify incorrect tax codes with HMRC.