CONCERNS OVER TAX CODE NOTIFICATIONS
August 9 2014.


The Association of Taxation Technicians (ATT) has voiced concern over a proposal by HMRC to relax the timeframe in which a revised PAYE code must be issued to employees. The ATT believes the proposal is unnecessary, will have an adverse impact on employees, pensioners with PAYE income and employers, leading to greater bureaucracy and confusion.

Currently, HM Revenue & Cutoms (HMRC) should issue a PAYE code to an employee on or before issuing it to their employer. HMRC has published a draft statutory instrument proposing a change to the 2003 PAYE Regulations. This would allow a delay in the issue of the employee’s coding notice by up to 30 days after the code has been notified to their employer.

The introduction of a delay of up to 30 days will inevitably lead to many payrolls being run using amended coding notices before employees have had the chance to check that they are correct. The ATT thinks this is wholly illogical and very likely to lead to payroll bureaus and employers having to deal with more enquiries and complaints from employees and pensioners who cannot understand why there is a change in their net pay. Employers, however, are never given a breakdown of the coding changes so the employees will continue to be left in the dark until HMRC send them those details, up to a month later.

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