Revenue tests new trigger to increase the accuracy of PAYE codes

Revenue tests new trigger to increase the accuracy of PAYE codes

HMRC is trialling a new system which is intended to improve the accuracy of employees’ PAYE tax codes.

They believe as many as half a million tax codes being used by employers across the UK could be incorrect, leading to employees either overpaying or underpaying tax.

To address the problem, HMRC are making changes to dynamic coding, which began its rollout in July 2017.

Dynamic coding is designed to make use of the additional information HMRC is now receiving from employees and employers to recalculate pay estimates during the course of the tax year.

As part of the initiative, HMRC is also placing a renewed emphasis on ensuring that employers complete new starter checklists properly and will be visiting the 100 worst offending employers when it comes to failing to complete the new starter process.

Complying with HMRC new starter checks is just one of the ways that we can help remove the burden of compliance from your shoulders. To find out more about the full range of payroll services we offer, please contact us.

Posted in Left, Payroll.