HMRC to proceed with changes to issuing coding notices

07 January 2015

Following the consultation on arrangements for issuing PAYE coding notices to employees and pensioners, HMRC have now decided to proceed with most of their proposed changes.

As the announcement confirms, the original proposal would have allowed HMRC to:

· remove the obligation to give the employee notice of a new code notified to an employer where the employee's PAYE income is not chargeable to tax or the employee is not liable for tax on their PAYE income;

· delay the issue of a notice of coding to the employee for up to 30 days from the date when a notice of an amended code has been issued to the employer; and

· allow for the notices of coding to be issued electronically through digital channels.

The government now plans to proceed with the amendments to remove the requirement to issue notices of coding to individuals where there is no liability to tax and to provide for the digital issue of notices of coding.

They are postponing the proposed amendment to delay employee notices of coding for up to 30 days at this time pending further review.