My wife is employed and receives a salary / car allowance / bonus all paid monthly through PAYE. The only BIK is medical cover. To date everything has been fine, tax codes are correct and deductions made normally.
Enter December and it has been decided that the employing company be changed to the American parent company. Details are sent to HMRC, quickly followed by new coding notices being issued.
Quite shocked that despite nothing in her salary / benefits changing my wife has been put on a massive K code (Happy Christmas).
A phone call was made to HMRC and after some time we were informed that their computer had made an error and when the advisor worked through it manually there was a tiny change to the coding notice (no K code after all), we were then advised that a new coding notice "should" be issued.
It now appears that the vast majority of 550 employees have had massive changes in their tax code and we are assuming that most of them are incorrect.
It worries me that if this one had not been challenged, how many changes would have been made leaving employees short of money over the Christmas period. Not sure whether I should be surprised at the apparent lack of oversight at HMRC or not, but was wondering what similar experiences any of you may have encountered?