PAYE improvements from April 2007 - Changing the way that HMRC deals with PAYE

HMRC is making changes to internal processes from April 2007 that will reduce the time taken to update employees' tax records.

An automatic process will be introduced to change tax codes during the tax year for benefits reported by employers on forms P11D and P46(Car). The information will be processed more quickly with the result that the tax code will be updated in the current year, in advance of settling the previous year's liability. Details of code changes will be notified by the normal process. Employees will have more accurate tax deductions and employers should get fewer enquiries from their employees about their tax.

Also from April 2007, pay and tax information for an individual from forms P14 will be combined automatically into a single total, irrespective of the number of jobs the individual has had during the year.

There will be no change to National Insurance processing arrangements.

...UK Payroll News - Latest


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Changing the way that HMRC deals with PAYE

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We have been given information about a query that was raised at a recent British Computer Society (BCS) meeting. It appears that the previous pay and tax details on P6 notices issued through HMRC's Data Provisioning Service (DPS) have appeared as "0.00" when in fact they should be blank. The danger is that employers will incorrectly zero the previous pay and tax details from the employee's P45.

The following statement was issued by HMRC:

DPS P6 with Nil Pay and Tax Overwriting Data

This query has recently been raised by others and we are currently investigating. It is possible that previous Pay and Tax details are being issued as 0.00 where there is no actual change to the Pay and Tax information already held. Under these circumstances these fields should either be ignored or where there is any doubt investigated with the local office. We realise that this is far from ideal and are seeking definitive view on the subject and resolution as soon as possible.

...UK Payroll News - Latest

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