DIY PAYE codes

Business Growth through Recruitment

HMRC is going ahead with two new services which will allow directors and employees greater control over their tax codes. Can you take advantage?

New service already available. All directors and employees now have a new way to tell HMRC that they think their code is wrong. It takes the form of an online structured e-mail that anyone who pays tax under PAYE can use. Thankfully, there’s no registration process involved.

2014/15 onwards. All you need to do is follow a link to HMRC’s secure e-mail page. This contains a list of questions ranging from basic name and address etc. to details about what should be included in your code number for 2014/15.

Note. The service can’t be used for the current tax year as it’s too late. HMRC says it aims to respond within 15 days of receiving your e-mail. That seems optimistic given its record, but time will tell.

New online service. “PAYE for Employees” is an online service that will be launched in April 2014. The scheme is still mostly under wraps, but we can say that you’ll need to register for HMRC’s online services to use it. As soon as we know more we’ll pass it on.

Direct access. The service will allow you to view your 2014/15 code number on screen and make changes. After HMRC approves them a new code will be issued. At first the only changes you’ll be able to make will be to benefits in kind included in your code. However, HMRC says that later this year you’ll be able to make other types of adjustment too.

Tip. HMRC plans to allow you to make changes to your code from September. However, if you register in April and pass your login details to us, we will be able to use the service earlier. As this will save us having to phone or write to HMRC about code corrections.