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HMRC Proposes Tax Code Delay

HMRC Proposes Tax Code Delay

The tax code delay is due to HMRC proposing changes to the PAYE system, such that they can wait up to 30 days before informing an employee that their tax code has changed.

The idea is to help HMRC by enabling them to send out tax code notices at a time when they are less busy and so able to deal with any enquiries that follow.

However, in these cases the employer will still be informed immediately of the tax code change meaning that employees could receive unexpected reductions to their net pay.

We feel that this is a ridiculous unfair proposal that should not be introduced. It creates great uncertainty for employees and is sure to create further tax code errors.

The proposal is subject to consultation watch this space for further details.

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