Ive just had a tax code notice change for an employee of one of my clients going from 944L to 89T. I ended up ringing the tax office who advised this was wrong. Now this is the 3rd instance of incorrect tax codes I've seen in the last 2-3 months. No explanation was given - just 'oh its wrong/change to 1000L'
Wondered if anyone else had seen such problems - or had even thought a tax code change was odd and maybe hadnt checked it.
Rather worrying to see - wonder how many others are incorrect! Took me 30 minutes to get through to HMRC but glad I rang!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
At least you have yours! According to a client, not one of his staff have received the notice - am I suppose to lie on basic tools and say I have had a P6 in order to change from 944L to 1000L?!
Hellooooo I use Moneysoft and they say that all previous 944L will be uploaded to 1000L automatically so you then only have to change the ones you get a coding notice for (which should be from HMRC direct to your agents login - they usually prompt you with an email although I check randomly just in case Ive missed something)
I dont even know if HMRC bother sending 'standard' tax code notices out to people these days, - only the others, although Ive not had a single one from a client apart from one where HMRC said they were expecting her to earn over £120k - she was so shocked that she sent it me to sort along with her comments ' I wish!!' (and she was put back to 1000L!!)
There may have been something in the Agents or Employers Bulletin but I have to be honest (bad bad girl!)- Ive not had the time to read it, so I say yes move them to 1000L.
Here is the moneysoft guidance if anyone wants to see it.... http://www.moneysoft.co.uk/support/payroll-software/guide-create-file-next-year-2014-15.htm
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I updated basic tools expecting that it would upgrade all the codes to 1000L but the employee records are still showing 944L - which I guess makes sense. HMRC update wouldn't change them all, in case the new code shouldn't be 1000L.
I have gone into the "change coding" option and its asking me to answer a multiple choice question
Statement: *
HM Revenue & Customs (HMRC) has issued a tax code (P6) for this employee for the tax year shown at the top of the page.
or
HMRC has not yet issued any tax codes (P6) for this employee but I have now received a P45 part 3 from this employee, and the date of leaving shown on there is in the tax year shown at the top of the page.
I have received a P9(T) or P9X for the tax year shown at the top of the page.
I have not received anything from either HMRC or this employee
or
I have now received a P45 part 3 from this employee, but in the meantime HMRC has already issued a tax code (P6) for this employee
I am not set up as agent for most clients, I just submit the figures - so if they don't pass me something, I wont see it.
If I go for the final option, it just moves me back to the home page - so technically all I can do is say the P6 has been issued, and hope it has??
Hi Michelle
The only other thing you could do is leave at 944L and then the employers will get a tax code notification change (via RTI) to move it to 1000L but you will need to contact them to warn them to pass it over asap. I recall you said you didnt do payroll for many clients so that shouldnt be too onerous(hopefully). If not listed as an agent - MIGHT be worth changing as it does make life easier (mostly) or do you have access to their logins - if so you can view the RTI/other notices from last year and this on that page? Also - might be worth a look at the latest Employer Bulletin, which if I cant sleep later will plow through and let you know!
Good point Rob about reminding peeps to clear the Week1/Month1 code!
Basic Tools is pants! How many clients do you do for?
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I had the same problem with a small company with the employees being the father and daughter. I rang HMRC and due to the 'speak your own option' despite saying I was an employer wanting to know about tax codes got put through to an employee advisor and was told he couldn't transfer me to an employer one I would have to ring again and state employer. It took all in all about half an hour and the advisor told me to tick the first option even though none of the statements were true (my first step was to check on line and there were no tax notices there for 2014-15). Just felt I'd wasted a lot of my time and clients money.
Another gripe about Basic PAYE tools was that I was unable to do the year end after the last payment for 2013-14 because the software didn't have the option, had to wait until the new download was available. Total shambles - they want information on time or they'll fine you but their own software is not up to the job.
Thats yourself and Bill both back on the site in the last couple of days.
Rob returned a few months back.
Oops, just seen the time.
Got to go but will catch up soon,
All the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I had the same issue as you Michelle on basic tools
Can't remember which of the 1st 2 I chose but after I had done it ( I was on site) they remembered they had had paperwork that just said to uplift all the Lcodes by £56 which is what I had done. You would think if the system knows that the code needs changing it would just do it!
Now I am wondering if I got it right. RTI makes my brain hurt
Michelle - was just thinking you could maybe have better free software than HMRC's own software, but as you are doing for a few different companies would probably cost you, so maybe for the once a year kinks its worth staying where you are!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Have thought about that before, but never got round to looking! I'm using some payslips software with BT and its working quite well, so probably why its never been f pressing importance.
Ah now I remember why I moved one of my clients from it - it didnt produce payslips - find it odd that HMRC's own software could get away with that. They used to have superb software for 50 employees and all for free but they dont like giving much away do they. I use Moneysoft although only did a few payroll - one Ive dumped/one has just sold his business and I have a couple left so will be on the hunt for free software myself perhaps. Was going to go after just payroll business but with RTI Im not sure I can be bovvvvered!
Im good thanks - been busy and not on here for ages properly so feel I have a lot to catch up on. Hows you - all good?
Jo xx
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Been busy and trying to cut down on hours now I'm a pensioner!!!! Have managed to pass on one client and another couple are, hopefully, retiring after this financial year, mindst you one of them has been retiring next year for the last 5 years at least. Tend to work Mon-Thurs then go to caravan Fri-Sun where I have no internet access so can relax.
Remember the dog bite from 2009, well the client agreed a settlement the day before a court hearing in January - silly man must have cost him a fortune in lawyer's fees.
Talking of tax codes, I received tax code notices for two employees who actually left one of my client's employment back in August 2013 !! I'm now going through the right performance of phoning HMRC, sending letters back and forth to try and get this sorted after they told me I should re-submit the return using my usual method. I'd already migrated 12Pay to the new financial year.
On receiving reply letters from HMRC, they'd actually used another employee's NI number against one of the employees, so I had two letters regarding two different employees both with the same NI number!!
