Getting the Correct Tax Code

The last two years has been a difficult time for the HMRC’s National Insurance and PAYE Service. Soon after its launch vast numbers of incorrect tax code numbers were sent out and it automatically issued thousands of demands for tax that people had no idea. After being stung by criticism, HMRC has become more proactive over tax codes in an attempt to stop any more problems

A correct code. Tax codes are at the heart of the PAYE system. If yours isn’t correct, you won’t pay the right amount of tax on your salary. However, getting your code right isn’t a simple matter because, the HMRC has to rely on data from previous years, e.g. tax returns, P11Ds etc. However, HMRC has sent last year the newly designed Form SA252 to taxpayers whom are at risk of having incorrect codes.

The SA252s will ask details of changes to income etc., so that the code number can be amended to reflect these. However, the problem is that by the time the forms are issued it is already over half way through the tax year and the damage, i.e. an under or overpayment of tax, already done. But it will at least mean that the HMRC more up-to-date information to work out your tax code for 2012/13.

If you have any problems with your tax code, it is best to look for professional help as this is something that is difficult to resolve if it drags on continuously. We at KVS Accountants have helped many individuals to resolve tax code issues. KVS act as accountants in Putney, Putney Heath, Roehampton, Earlsfield and Southfields

 

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