When we process your payroll, part of our procedure is to download any tax code changes from H M Revenue and Customs. There is a direct link between our payroll software and HMRC so nothing gets missed.
If we receive a new tax code for one of your employees, we have to apply it to your employee's record straight away (unless it is for the following tax year). HMRC don't tell us why the tax code has changed - this is because it is personal to your employee and might be because they are receiving other income or benefits, or because they owe HMRC tax from a previous tax year. There are a number of reasons why HMRC might change a tax code. However, our responsibility as your payroll agent lies solely with applying the new tax code.
We highly recommend that your employee signs up with HMRC to access their 'Personal Tax Account'. This account will provide them with lots of information regarding their tax, national insurance and state pension. They can see the tax code they should be on and how this is calculated. They can even see when they can start getting their state pension and what this is forecast to be each week!
If your employee believes they are on the wrong tax code, or does not understand why their tax code has changed - they will need to contact HMRC directly on 0300 200 3300
Your employee can get started with registering to access their account right [here].
You might want to let your other employees know about this, to save them coming to you with queries in the future. You may even want to register to view your own account if you haven't already done so!
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Portt & Co