Your circumstances can change during the tax year, so HMRC can amend your tax code at any time and send you a new PAYE coding notice. Keep all your coding notices to check that HMRC have calculated your tax code correctly and that your employer is using the correct tax code for you.
What do you need to know about PAYE code?
What is PAYE? HM Revenue & Customs (HMRC) issue a PAYE code to your employer, to tell them what tax-free earnings you are entitled to in a particular pay period, so that tax at the appropriate rates may be calculated on the balance. Your employer is not told how this code has been calculated.
Can a coding notice be issued in hard copy?
There are some cases where HMRC are not obliged to issue a coding notice in hard copy, but you can still ask them for one (you will always be able to see your current coding notice in your Personal Tax Account ); and tell your employer (or pension provider) what your tax code is, but not how they have worked it out.
What do you need to know about the coding notice?
The coding notice provides a note for every item in the tax code calculation. These notes are intended to help you to check your tax code, but the way the tax rules work means this is not always straightforward.
When do the coding notices start for PAYE?
HMRC has come under heavy criticism during the last two weeks from all sectors of the press in relation to the issue of the annual coding notices for PAYE. This starts in mid-January, and will run until mid-March, by which time employers will have been notified of the codes to use for their employees for 2010/11.
How to check your coding notice for taxes?
if you are employed and your employer provides you with benefits, such as private medical insurance or a company car, the value of those benefits may be taken off your tax-free amount if your employer is not payrolling them; back (for more on the adjustment that is made to collect unpaid taxes see How do I check my coding notice? below).
