Tax Chat - 2012 / 13 PAYE Coding Notices

Between now and the end of March HMRC will be issuing PAYE coding notices for the 2012/13 tax year.  It is this coding notice which informs your employer/pension provider as to how much tax to deduct during that tax year.

The tax coding notices are usually accurate provided your level of income and benefits does not change in the period but it is worth checking these carefully each year to ensure they are correct.
Furthermore, if you have had a change in circumstances it is even more important that you review the coding notice to avoid any nasty shocks later. Whilst we all might love to find out that we have overpaid and are due a repayment, it is more important to make sure to avoid the situation where you are faced with an unexpected tax bill.

Some common changes in circumstances which may result in the incorrect tax code being issued are where:
•    You have a change to your employment in the period – this could be either a change to your benefits package or a complete change of job;
•    You start to make additional personal pension contributions; or
•    You reach retirement age and begin to receive state pension (at this stage you may also be entitled to an additional personal allowance).

Unfortunately HMRC no longer issue us with an agent copy.  We therefore need you to forward your copy on to us so that we can ensure it is correct and you are not being over/under taxed.

For further information or to discuss, please contact Lesley Sutton on 01484 550037 or taxchat@revellward.co.uk.