Wise tax statement errors could affect 4,000 customers
Around 4,000 UK customers of financial services provider Wise have been told that tax statements issued between 2021 and 2025 contained incorrect figures. The errors could have resulted in taxpayers paying too much or too little income tax and capital gains tax (CGT). What should affected customers check?
According to reports published on 8 October, the problem arose from software supplied by a third-party provider used in connection with Wise's investment products. Incorrect calculations of investment income and capital gains were included in statements that customers could have relied on when completing their Self-Assessment tax returns. Wise says it identified the errors through its internal checks, has corrected the underlying software problem and has issued revised statements to affected customers. However, receiving an incorrect statement does not necessarily mean that a taxpayer paid the wrong amount of tax.
The company is now discussing a possible bulk settlement with HMRC to cover tax shortfalls arising from the errors. It has also said that customers who overpaid tax will be compensated. The proposed settlement has not yet been finalised, so affected customers should not assume that any outstanding tax liabilities have already been resolved. Anyone receiving a corrected statement should compare it with the figures included in their original tax returns. Where the amounts differ, the next step is to establish whether the error actually changed the tax payable. Customers should also retain the original and corrected statements, together with any correspondence from Wise explaining the proposed arrangements.
Taxpayers can normally amend a return within twelve months of the statutory filing deadline. For the 2024/25 tax year, this means amendments can usually be made until 31 January 2027. Different procedures apply to earlier years, including claims for overpayment relief where the relevant conditions and time limits are met. Affected customers should establish precisely what Wise intends to do on their behalf before making any corrections or payments, particularly where the company proposes to settle additional tax directly with HMRC.
Related Topics
-
Company buying back shares? Watch out for forthcoming changes
Company owners arranging a retirement, a family succession or a shareholder exit may need to rethink how shares are bought back. The Budget confirms that the government intends to tighten the rules distinguishing capital gains from dividend income, potentially making some buybacks considerably more expensive. How might an ordinary business exit be caught?
-
What can you learn from HMRC’s input tax toolkit?
You know that penalties can be charged on careless errors and many mistakes relate to input tax being wrongly claimed. How can HMRC’s input tax guidance help your business to claim the right amount?
-
A £3,000 side-hustle allowance: more generous than it looks?
People making money from small side businesses will have more room to earn without paying income tax, following a Budget decision to triple the trading allowance. However, the figure relates to what you receive before expenses, not the profit you keep. Will the £3,000 allowance actually save you tax?