I run fornightly payroll for 31 employees using Brightpay. In the past week I have received 5 P6 notices to increase the amount of tax deducted and put on Wk1/M1 code.
Our first pay period this year was on 12th April. As we are fortnightly paid Brightpay calls it period one and allocates 2 weeks free pay allowance, but HMRC are saying it should only have had 1 weeks allowance and thus the £40 ish pound underpayment.
Our last pay day of the year will be 27th March- therefore under HMRC's calculation employees will only receive 51 weeks allowance therefore they will overpay. The 'helpline' informs me that that is OK as when the employees receive their P60 they can request a refund. Seems like a lot of red tape for a presumed underpayment by the end of the year. Also looks like we'll be in the same position next year.
Do I have any authority to not change the tax codes? Do all employees have to spend half an hour on the phone to demonstrate that by the end of the year they will have paid the right amount and have the decision reversed- for 31 employees that's almost 2 days work time lost.
Is there somewhere to appeal to? Employer and employee helpline will only pass me back and forth between them and Brightpay says their calcs are correct.