If you’re confused by the PAYE tax code you’ve been issued by HMRC, you’re in the same boat as several thousands of others who have all been sent incorrect codes.
The issue has stemmed from the complexities of trying to synchronise employee records with HMRC records. Small errors on the Employer Alignment Submissions or Full Payment Submissions made to HMRC by employers means that taxable benefits aren’t being recognised and as such, an incorrect tax code is then issued.
Any employee not included in the submissions is classified as a departing member of staff however if subsequent submissions include this member of staff, they are regarded as a new staff member and issued a new tax code. Additionally, if any part of the form is incomplete with the missing information included in later submissions, the same problem occurs.
HMRC is advising all those affected to disregard their new code and continue using their old code, until the issues are fully resolved.
If RTI is costing you valuable time that you should be investing in other areas of your business, why not contact us to discuss how we can help you – phone 01892 770 612 or email email@example.com.