HMRC tax codes

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Hi,

Is everyone else experiencing weird and wonderful issues with incorrect tax codes being issued?

Our most recent case was this morning where an employee of a client who works 30 hours per week at £8 per hour (paid fortnightly) was issued with a tax code on the basis that they are predicted top earn over £100,000 this year. They have no other employment or other income.

We've checked our Xero Payroll entries just in case adn everything is fine.

How are HMRC getting tax codes so wrong? Anybody else experiencing this?

Replies (14)

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Welsh witch
By Absolutely
19th Apr 2018 12:04

I'm sure I saw a problem raised on Xero payroll forum of a similar problem! Have you checked out their help area? I know it's not great, but I've been keeping a close eye as I know they suffer glitches, and have just started using the payroll option for one job. I just wondered if it is an issue there, rather than HMRC?

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By Wanderer
19th Apr 2018 12:17

Yep similar last week, clients tax code based on over £123,700 income.

Actual income circa £20k.

Nothing to do with Xero.

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Northumberland flag
By MJShone
19th Apr 2018 12:42

Yes - constant issues ever since RTI came in. Most common one is doubling up pay. New 18/19 codes for Scottish residents were mostly BR or D0 - for the same reason, I suspect.

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Northumberland flag
By MJShone
19th Apr 2018 14:16

DUPLICATE

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By ireallyshouldknowthisbut
19th Apr 2018 13:51

I am not sure if they are more frequent or not, but there are a huge number of errors in tax codes to the point we tend to just ignore the mad ones.

We also bizarrely had a spate of 2017/18 codes being issued first week in April 2018. Not much use!

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Replying to ireallyshouldknowthisbut:
ALISK
By atleastisoundknowledgable...
20th Apr 2018 08:27

Agree - when we get coding through that doesn’t make sense we just ignore it.

Doesn’t happen too frequently luckily.

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Replying to ireallyshouldknowthisbut:
By Marion Hayes
22nd Apr 2018 17:04

I disagree - they will at least let you start the new tax year on the right coding basis - if they are correct of course

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By SteveHa
19th Apr 2018 21:30

Tax codes, simplified assessments, employer year ends, CT600s vanishing, SATRs vanishing.

Does anything work, there?

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By Peter Kilvington
24th Apr 2018 11:37

Had four examples of this, in both cases, they were husband and wife, which I find strange. HMRC decided that income would be in excess of £125K PA while current earnings were in the region of £20K. When I spoke to HMRC no explanation was provided as to where the "estimated income" came from.

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Replying to Peter Kilvington:
By CazzyT
24th Apr 2018 14:03

Ah yes, the estimated income. I am frustrated with the estimates that are included in codes. As mentioned above we have been duly ignoring the mad ones, but then you submit a self assessment return and HMRC tell you it is wrong, amend it and reintroduce a restriction for an estimated underpayment, even though you have just submitted a return with the ACTUAL figures on it.
Grrrrr! It does not get any better.

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Jennifer Adams
By Jennifer Adams
28th Apr 2018 08:33

I keep getting "Job expenses" for ordinary basic directors.
I too ignore them if I do the payroll

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ALISK
By atleastisoundknowledgable...
28th Apr 2018 08:50

I’ve said it in a previous thread, but it’s relevant here ... my bro-in-law has a co car & gets paid 10ppm fuel (or 11, can’t remember, whatever the official rate is these days). Despite him speaking to HMRC and telling them the situation, they coded in an expense allowance of 15,000 miles x (45p-10p) being the excess mileage that he wasn’t paid. Errrrrr. ?

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Replying to atleastisoundknowledgable...:
By SteveHa
03rd May 2018 10:30

So they also forgot that, even if their premise was correct, it should have been just an extra 15p on mileage above 10K, too?

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By Jo Nokes
03rd May 2018 09:10

Today, I received a code 1185L as the employer's payroll agent. This ignores the car benefit, and replaces a previous code issued in January for 18/19, which correctly showed the car benefit. The director's code, viewed on the HMRC website, is still showing just the correct lower code. I will ignore this code, but for a large payroll department, it can't enquire into every code, and will end up using what is a completely wrong code. The employee may notice the error, but in my experience, most haven't a clue

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