HMRC to use PAYE information to make in-year adjustments

Category: Amber AccountingTaxation - Posted On: Jul 19 2017

From July 2017, HMRC will start to use PAYE information to make in-year adjustments to taxpayers tax codes in real-time. This will avoid both under and overpayments from occurring by the end of the tax year. Taxpayers will be notified when the right tax is not paid and, through their Personal Tax Account, HMRC will provide a clear explanation of how the tax has been calculated.

If you receive a new tax code or notice a change in your take home pay this may be why. It is important to check that the code is correct and any subsequent tax calculation is also correct.

We have heard that some tax calculations have been issued for 2016/17 which show a refund of tax deducted from bank interest, despite the fact that such deductions (mostly) ceased in April 2016, to which the individual is not entitled.