HMRC PAYE update (tax codes, employer bulletin and basic PAYE tools)

Talking to HMRC about employees’ tax codes

Each year we have high volumes of calls about the coding notices (P2s) we issue to individuals. We are aware that some employees want their employer to handle their queries with HMRC so we have clarified the existing guidance for our staff. Nothing in our processes has changed.

We can confirm that our advisers can speak to an employer, who passes our security checks, in order to confirm the tax codes that should be used for one or a small number of employees. But our advisers cannot discuss any aspects of the particulars of those codes as this clearly could breach customer confidentiality.

We can, however, discuss aspects of the code with the employer (as we would with any third party) if the employee:

• is present for the call
• can verify their identity to our telephone adviser, and
• confirms that they are content for the employer to represent them during that particular call.

We would not expect an employer to handle its employees’ contact with HMRC as a matter of course. But we appreciate there are circumstances when that is needed.

It is important that in these circumstances employers call the right phone line. Our Employer Helpline does not have access to individual tax (NPS) records and we have put a recorded message on that line to that effect. The Taxes Helpline (0845 300 0627) can speak to an employer to confirm an individual’s tax code.

We are continuing to look at the ways we can improve our service to employers within the constraints of the confidentiality obligations and resources we have.

Amended E12 and E13

We have amended the contracted-out National Insurance contributions (NIC) table on page 5 of the Helpbook E12 and the Employer's NIC rebate example in the right hand column on page 12 of the Helpbook E13. Find them at PAYE for employers: E12(2012) and E13(2012)

Employer Bulletin

Issue 40 of the Employer Bulletin is now available. This is aimed at employers and agents it contains important information and news about topics affecting the operation of payroll

Basic PAYE Tools

Recent feedback suggests there is a need for some clarification around the expiry warning message that appears when you open the 2011 version of the Basic PAYE Tools.

To complete the 2011-12 tax year and start 2012-13 you must download the latest version of the Tools from:

www.hmrc.gov.uk/paye/tools/basic-paye-tools.htm

Technical Team

24 February 2012