PAYE coding warning

HMRC often uses estimates to adjust PAYE coding - and mistakes are made. Those mistakes can lead to:

- overpayment of tax: which can see you providing HMRC with an interest free loan of your cash until you reclaim it

- underpayment of tax: leaving you with a nasty surprise at the end of the year when you have a large liability to pay

- overpayment of tax: without you even realising and so losing the money for good

The process of changing an incorrect tax code is relatively easy. But of course it depends on you being aware it is wrong.

HMRC has now stopped the practice of providing agents with copies of coding notices. You will receive one, we won't. So, unless you tell us, we won't know.

So, if we currently complete your tax return please be sure to forward any coding notices to us so we can ensure their accuracy.

If we don't help out with your tax return you may wish to consider engaging us to do so to ensure you're paying the right amount of tax at the right time.

For more information please speak to our tax department by calling 01733 568321 or email tax@rawlinsons.co.uk