Luton & Dunstable Hospital nurses still facing demands after tax error

Shaun's mother received a letter from a debt collection company at the end of July

Many nurses at a hospital are still facing repercussions from a error that means they need to pay thousands of pounds extra tax, their union said.

In May 2022, nurses at Luton & Dunstable Hospital said they had been put on an incorrect tax code while working overtime in the past few years.

The son of a nurse told the BBC that debt collectors had been in touch requesting repayment of thousands.

The hospital said it was helping staff. HMRC said tax codes must be checked.

Shaun said his mother was told she owed about £10,000 to HMRC and recently received a letter from debt collectors saying more than £7,000 remained outstanding.

He said she had been paid £140 a month extra over seven years, but because of her varying shifts she did not notice the difference in her pay packets.

"She's be working there going on 35 years; nothing like this has ever happened before," he said.

He told BBC Three Counties radio his mother had been left "frustrated" and "stressed" and felt that not enough advice or help had been given by the NHS hospital.

"There's not many jobs where you have to do a 12-hour shift without any kind of break, overnight, and then get a huge tax bill," said Shaun.

Unison said about 100 nurses at Luton and Dunstable Hospital had been on an incorrect tax code

Julie Trundell, from the Unison union, said she thought there were about 100 affected nurses who had been left with large bills, with several staff having a similar story to Shaun's mother.

"The unions have been pushing the trust [Bedfordshire Hospital NHS Foundation Trust] for answers on how it happened and why it happened. We've managed to get the trust to agree to bring in an external auditor to investigate," she said.

"It's absolutely shocking, I feel the trust and HMRC should and could do more to support these staff."

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The NHS trust, which runs the Luton & Dunstable Hospital, said: "This is a problem created by incorrect tax codes, rebates and tax-free allowances issued by HMRC to the trust's payroll provider.

"We have provided staff with support where possible, however this is a direct issue between the individual and HMRC."

It has been contacted for further comment regarding the auditor.

A HMRC spokesperson said: "The tax collected for employed PAYE customers is based on the information provided by their employer.

"Where employees receive unexpected tax bills we will work with them and their employer to support them in putting their tax affairs right.

"We take a supportive approach to customers with tax debts and anyone struggling to pay the tax they owe should contact us to discuss paying the money in affordable instalments."