27 April 2026
Empowering Employees, Protecting Payroll: Why a Professional Tax Review Service Is the Smart Next Step for Payroll Leaders
For payroll managers, supporting employees goes beyond accurate and timely salary payments. In today’s complex tax environment, there is an opportunity to add real value by helping employees understand that, while payroll processes their pay, it is ultimately their responsibility to ensure the correct amount of tax is paid.
Under the UK’s PAYE system, employers deduct income tax based on the code supplied by HM Revenue & Customs. Payroll teams operate PAYE correctly using the information provided. However, HMRC relies on the accuracy of its records. Errors can occur if employees change jobs, hold multiple roles, receive benefits in kind, or have gaps in employment. Even minor discrepancies, such as outdated reliefs, unreported benefits, or HMRC coding errors, can lead to overpayments that go unnoticed for years, or, less commonly, underpayments that result in unexpected bills.
The scale of the issue is striking. Reviewing more than 2 million employees’ tax records, Check My Tax, the UK’s leading employee tax review specialists, found that 670,000, over one in three, had errors causing overpayment of tax, with employees recovering an average of £202 each. Across a workforce, this represents a substantial financial impact and highlights how common tax record inaccuracies are.
Payroll leaders may worry: will offering a tax review service make employees blame payroll for errors?
If positioned correctly, the opposite is true. The service reinforces the distinction between payroll responsibilities and the employee’s personal tax position. Payroll applies HMRC-issued tax codes; it does not create or amend them. Any discrepancies result from outdated or incomplete HMRC records, not payroll processing.
Importantly, offering access to an independent professional tax code review can also form part of a wider Environmental, Social and Governance (ESG) and Corporate Social Responsibility (CSR) strategy. By proactively helping employees identify and correct tax overpayments, organisations demonstrate a tangible commitment to financial wellbeing, fairness and responsible employment practices. This practical support strengthens the employer’s social impact credentials while reinforcing governance standards around compliance and transparency.
A professional review provided by the employer demonstrates transparency and commitment to employee wellbeing. It empowers employees to check external records while keeping payroll fully within its legal and professional responsibilities. Payroll is not providing tax advice. It is facilitating access to independent expertise, reducing internal queries and protecting the payroll function.
The review examines HMRC records, tax codes, employment history, and allowable reliefs. Where errors exist, completed HMRC claim forms, together with step-by-step instructions are provided to employees so they can submit correction requests directly to HMRC. HMRC then issues any refunds directly to the employee, returning overpaid tax from up to four previous tax years. Correcting tax codes also helps to ensure employees receive the correct net pay going forward, helping them plan budgets more effectively and avoid unnecessary deductions.
For payroll teams, the benefits are clear:
• Fewer internal queries about tax codes and pay
• No additional workload
• Clear boundaries between payroll administration and personal tax advice
• Reinforcement of HMRC’s role in issuing codes
• Enhanced employee financial wellbeing support
• A high-impact addition to the benefits portfolio
With over one in three employees affected by tax record errors, the case for proactive support from their employer is compelling. Far from creating problems, offering a professional tax review protects payroll, empowers employees, and strengthens trust. For forward-thinking payroll leaders, it is not just a value add, it is a strategic enhancement to employee support, helping the organisation demonstrate both compliance and genuine employee advocacy.