HMRC have announced that a number of Coding Notices issued for the 2010-11 tax year are incorrect. One consequence is that whilst you may have been sent a revised, corrected code number, your employer may not. Your Employer cannot change the code used for you in their payroll records until they receive a copy from HM Revenue and Customs.

The groups of tax payers listed below are the most like to suffer from this issue:

• Pensioners
• Those on State Benefits 
• Company car and car fuel benefit recipients
• Income earners with an annual salary in excess of £100,000 – in this instance the tax payers code may continue to provide personal allowance when in fact they should not receive this. 
• Taxpayers receiving a one off deductions from their 2009-10 code to recoup unpaid tax from previous years. 
   

The effect of these erroneous codings will be that the individual will either pay to much or to little tax, at least until a new corrected code is issued.

Should you need assistance with this or any other aspect of your payroll please call Moore Hill Accountants, Warrington on 01925 830830