Do you think you have the wrong tax code?

A high number of employees don’t check their tax code on their payslips each month and therefore will have overpaid/underpaid PAYE without realising.

From our experience most employees assume that HMRC issue the correct tax code and there is no need to check they agree.

Some advice to avoid employees over/under paying PAYE:

  • Employers need to ensure that all new employees complete the new starter declaration correctly and also provide a P45 in the first month.
  • Employers should always encourage their employees to check their payslips each period.
  • Employees should understand that Employers don’t issue tax codes, so it is not something employers will necessarily check, Employees can’t assume HMRC have issued the correct code.
  • As an employee, HMRC will always provide you a breakdown of how your PAYE is calculated, if this doesn’t look correct, please contact HMRC as soon as possible.

As a payroll bureau we do get all tax code notifications online however we are given no explanations as to why they change or why they have been allocated that code. Therefore, please contact HMRC if you have any questions regarding your tax code.