HMRC to send out PAYE coding notices
Individuals who receive a new PAYE tax code are advised to ensure that it is correct.
Over the next three months, HM Revenue and Customs (HMRC) is sending out new tax codes for the 2014/15 tax year, which will come into effect from 6 April.
Some individuals will be sent more than one tax code, in particular those who have two or more jobs at the same time, income from two or more pensions, or pension income and a job.
Not everyone will be sent a PAYE coding notice, in many cases because their tax circumstances have not changed from one year to the next. In this case, employers or pension providers will from April 2014 simply update their tax codes according to a generic instruction to amend codes in line with the universal increase to the personal allowance from the 2013/14 to the 2014/15 rate.
Anyone with a PAYE coding should make sure they have been given the correct code, as mistakes do happen, particularly if HMRC is not aware of a change in your circumstances. If you have the wrong code then you could end up paying the wrong tax, either too much or too little and either way with potentially adverse implications.
Your accountant can check your PAYE coding for you, but it should be noted that HMRC no longer sends copies of taxpayers’ PAYE coding notices to their accountants, so you will need to send or copy your notice to your adviser.
For further information, please contact James Cornthwaite.
Author: James Cornthwaite ACA CTA
A former pupil at St Aidan’s C of E High School, James attended Blackpool Sixth Form College and Lancaster University, graduating in 2004, gaining BSc. first class honours. He joined Moore and Smalley, Preston in 2005 and qualified as a...
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