.png)
.png)
HMRC have backtracked on their ambition to temporarily withhold details of PAYE code changes from workers.
HMRC have backtracked on their ambition to temporarily withhold details of PAYE code changes from workers.
The Revenue had sought the power to delay the issue of a coding notice to an employee or pensioner by up to 30 days after being sent to the employer or pension provider – but tax officials have performed a U-turn following responses to the plan, which featured in draft legislation published for comment last summer.
“Many respondents highlighted concerns that employer impact had not been properly assessed, suggesting that there would be increased employer burdens in dealing with queries from affected employees, significantly so for large employers and those with temporary workers,” said HMRC.
The Association of Taxation Technicians welcomed the change of heart. President Natalie Miller said the news demonstrated that the concerns of professional bodies had heeded by the taxman.
She added that the power to delay coding notices “would inevitably have led to many payrolls being run using amended coding notices before employees had the chance to check that they were correct.
“The consideration of changes to PAYE must be grounded by the principle that it is always best to treat employees like adults. That is achieved by placing the onus on them to lodge queries with the Revenue regarding their tax codes. Maintaining the current regulations does just that,” said Miller.
The tax authority intends to go ahead with the removal of the requirement to issue notices to individuals who have no liability to tax.
