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Further to concerns about the number of changes to tax codes, which left some employees with less them half their pay after tax, payroll management information service Payroll Alliance carried out a brief survey of employers.
The aim was to gather statistics to present to HMRC to demonstrate that all tax codes should include a 50% regulatory limit, not just K codes.
Further to concerns about the number of changes to tax codes, which left some employees with less them half their pay after tax, payroll management information service Payroll Alliance carried out a brief survey of employers.
The aim was to gather statistics to present to HMRC to demonstrate that all tax codes should include a 50% regulatory limit, not just K codes.
More than 70% of the employers who responded said they had to operate a non-cumulative basis on up to ten new codes a month to prevent excessive tax deductions. One employer reported he received up to 40 codes each month.
Forty-six per cent of the responses confirmed that employers had to offer employees a salary advance as a result of excessive tax being deducted from pay.
When asked how many complaints employers received each month regarding tax codes and deductions of tax in excess of 50% of pay, more than 65% of respondents said they had up to ten complaints a month, one employer received up to 20 complaints, another up to 40 complaints and a third received 50 complaints a month.
