Client on a six figure salary had a BR code operated for most of 2011/12 and asked me what to do. Mindful of the large tax liability which had built up I asked HMRC to issue a 0T code for 2011/12 which they did in February 2012, applied to March 2012 payroll.
Result? Disaster - the tax due for the month of March exceeds gross pay and the employer has deducted it in full thus creating a debt from the employee to the employer. I had not expected this to happen, with hindsight I should have asked for a Week 1. If it had been a K code this wouldn't have happened, so are there any regs which cover this situation, or has the employer operated the payroll absolutely correctly?