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HMRC are seeking powers that would enable tax officials to temporarily withhold details of PAYE code changes from workers.
Employees of businesses instructed by the Revenue to use a new code could be kept in the dark for up to 30 days, via statutory instruments designed as amendments to the Income Tax (Pay As You Earn) Regulations 2003.
HMRC are seeking powers that would enable tax officials to temporarily withhold details of PAYE code changes from workers.
Employees of businesses instructed by the Revenue to use a new code could be kept in the dark for up to 30 days, via statutory instruments designed as amendments to the Income Tax (Pay As You Earn) Regulations 2003.
The proposed measures are intended to allow HMRC to send notices “at times when it is best able to respond to enquiries from employees,” according to the department. The taxpayer’s right to appeal against a code would not be affected.
The plan was criticised by Baker Tilly partner Lesley Fidler as a dubious manipulation of the tax system.
She added, “If employees had more faith in the PAYE system, there would be fewer who enquire about changes to code numbers. If employer and employee notifications need to be staggered, surely telling employees first would be the way to try and get things right before under- and over-payments of PAYE arise?”
Comments on the sought-after powers should be sent by email no later than 3 August.
