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Will they be cross-referencing for SA records? I get fed up with P800 refunds for years already clear under SA, so you have to advise client not to cash payable orders, or explain why they need to repay their windfall!
HMRC said they sorted this problem out about 10 years ago. I've not experienced this problem for a long time.
We have had this issue several times and for our client's its generally where the NI number isn't linked to their SA record for some reason.
They have had a temp NI number linked to SA then their real NI number isn't linked to an SA record meaning that refunds are issued when they should be dealt with through SA.
"An employee can query their tax code directly from their PTA".
1. How does an individual holding power of attorney for an incapacitated pensioner do this? I haven't seen any relevant guidance.
2. What about my many clients who want to leave their tax affairs to their agent?
3. Presumably the change means that the agent for SA taxpayers will no longer be able to access coding notices with detailed workings. Please tell me I'm wrong.
1. You apply for a user ID.
2. This was supposed to be one of the tools that agents could use through Agent Services. But I guess it is now abandoned because it will be in MTD for agents which will be about 2025 I guess.
3. I hope not - but you're probably right. But I can only access detailed coding notices for about half my clients currently.
The net effect of these changes is that tax agents and employers will receive more, and more frequent coding changes, although we have been promised no more than one code change per month for a taxpayer! HMRC has designed a briefing pack for employers, to explain the issues.
I will have no problem with frequent tax code changes when and if payroll software can be informed of such changes automatically by HMRC so that we do not need to do this manually. Does any payroll software yet do this?
Kate Upcraft wrote:
I will have no problem with frequent tax code changes when and if payroll software can be informed of such changes automatically by HMRC so that we do not need to do this manually. Does any payroll software yet do this?
With Brightpay you just click on coding changes when running the payroll, and it downloads and updates them as long as you are registered as agent. Is that what you were after Charlie?
But I find it very hit-and-miss. Sometimes the employer tells me the employee has told them of a change but I've not received anything through the software so I phone HMRC and sure enough a change has been made. Anyone else have this problem?
Same with IRIS payroll products, when you open the client it polls for coding notices and updates as appropriate, the problem is they are invariably wrong so I don't want to automatically update if I know will lead to an employee ending year with underpayment.
Thank you, Birdman. That sounds good, though I note from another answer here that it may be hit and miss with some software. If we can rely on payroll software doing this accurately (such that it doesn't require additional, manual, time-consuming checks), then I have no problem with HMRC changing the code as often as they like.
One of the problems with the online codes is they don't automatically appear in the employee record. As far as I'm aware all software requires the user to tell the software to check for new codes. MoneySoft Payroll Manager requires this to be done within each individual employer. I guess others are the same. This routines adds a bit of time when processing each payroll and some staff forget to do it every time. I agree Charlie that there's no problem HMRC changing codes as much as they like if it is a seemless 100% reliable process. RTI has been with use for several years but this process is still not up to speed.
Kate,
A thought provoking article. Do you have any information on HMRC's progress to provide tax software providers with API access to client's PTAs?
As I understand the current state of affairs, agents cannot link direct to a client's PTA.
Most agent software already has the APIs built in for 2016-17 P60, P11D, state benefits, C2NICs and MA but HMRC aren't switching on the first three until after the P11D deadline. Most software can't switch on APIs selectively so some vendors are waiting until all are on before switching on the APIs. I don't think there are APIs for coding.