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Post Info TOPIC: Tax code change


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Tax code change
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Not really, Xantia. Normally, personal allowances are allocated to the employment income first. You can, of course leave the code number as it is but not many clients would appreciate the affect on cash-flow. It is possibly a Revenue mistake and the agent helpline will be able to change the code number easily enough.

Edit: Ahh bum steer, as they say in the west.  This is incorrect, of course; you can only use the helpline for someone you are authorised to act for.   Without say, requesting a password to act on behalf of the employee, HMRC will ask the employee to contact them direct. 

I always regretted the end of the old P15 coding claim form, but from memory, this was meant to be signed by the employee too, although I don't think we always did so.

Anyway, the new computer system, known as NPS has been churning out daft code numbers, usually, in my experience to the benefit of the Treasury.   One example is denying Age Allowance in the year of reaching 65 on the grounds that everyone of that age earns over £28,000 unless they tell HMRC otherwise.   I'm not kidding.

So that is what the employee will need to do - next week now given my misfired advice earlier.

Do I win the 'off piste' prize this week :o)

Regards,

Tim



-- Edited by Don Tax on Friday 13th of April 2012 06:12:43 PM

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One of my clients has recently received a coding notice to drop one of his employees from 747L to BR, effective from the start of the tax year.  She has no other income but has recently notified the tax office that she is going self employed.  (working at the same time)  Would this be the reason for the tax code change? 



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Thanks Tim, that's what I thought.  I have just recently got an agent code but this particular emloyer isn't set up on it yet.  I will ask the employee to contact them direct.

John



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