Consultation on minor tax code procedure change

07 July 2014

HMRC has published some draft regulations and a small consultation document in respect of tax code procedure changes.

This consultation is notice to enable HMRC to be able to send the tax code to the employer, but not necessarily immediately to the employee. One of the main reasons for HMRC doing this is to ensure they send out multiple code changes to individuals at a manageable time: you can imagine what it would be like to send codes out during the tax credit renewal period, individuals just wouldn’t get through to HMRC. HMRC will however need to ensure the individual has advice of the new code within 30 days of the code being issued to the employer. The regulations also allow for the changing of the definition of the code needing to be in writing; thus allowing the code to be shown in an electronic format via “Your Tax Account” or whatever electronic method will be available in the future.

There should be no impact on employers, although very occasionally if an employee does notice their tax code has changed slightly the payroll department may receive an enquiry if they haven’t received their piece of paper, or of course they elect to have it electronically and forget to look. Therefore the policy team intend to support these changes unless any members raises objections. If you believe these changes shouldn’t go ahead, or if you do support but believe something should be highlighted please email [email protected] by 20 July 2014.