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PAYE dual record

A fault with HMRC online services?

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For the third time in as many weeks I have encountered an issue with 18-19 tax codes.Each case is the same.For 17-18 a zero pay and tax is submitted for the employee. For 18-19, salary is paid on the commencing year (correct) tax code but then HMRC later changes the code to 1185L for no reason.We are also the employee's agent, so on contacting the agent line, we are told "the fault is with the employer's payroll software, they've created a new record under RTI and we have to use code 1185L in such cases." They agree the code might be "wrong" but they can't change it. It is the proverbial buck passing when we ask if it just might be an HMRC problem- "you'll have to contact digital services not us". The thing is, of course, if it is an HMRC error, it will be causing more call traffic to the Agent Helpline. The software provider Moneysoft, like ourselves, are incredulous. We have used Moneysoft, and no other provider, for both tax years. The employees did not leave and then rejoin. In each case we submitted a final EPS "final notification" no later than final pay date i.e on or before 5 April 2018 with no adverse messages from HMRC thereafter. Payroll agents not acting also for employees will go ahead with the code change. Ultimately this could cause underpayments that I would regard as ESC A19 fodder given HMRC is refusing to change a code they agree is wrong. Has anyone discovered what is going on here? Is it just yet another example of flaws with HMRC digital services?

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By jcace
21st Sep 2018 12:01

Have you given the employees concerned a new payroll number in the current tax year? I have come across situations where HMRC have interpreted this as a second employment with the same employer!!
However, if you act for the employee, I see no reason why HMRC shouldn't be able to amend the tax code on your request.

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By taxwize
21st Sep 2018 13:37

For both years on this one, there is no works or employee number. On the topic of a works number, we were told on another case "he's got a new works number for 18-19" which I think bears out what you are saying too.Trouble was, we hadn't changed his works number!On the question of Agent Helpline, yes, you'd think they'd be only too willing to amend a code especially as this one was going to go down.I've done what was requested on a previous query on this topic-phone the Agent Helpline. The Helpline basically say..
sling your hook, we know it may be wrong but we'll not change it. Maybe I'll try another call and this time I'll get someone sensible instead of a jobsworth.

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By SXGuy
21st Sep 2018 22:32

It's a client id/works number issue. Has to be. Someone somewhere has changed it. Whether it was the software or hmrc I don't know.

But 9 out of 10 times these things happen when the employee appears to have more than 1 and as said already hmrc treats it as 2nd income in the same company.

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By Marion Hayes
22nd Sep 2018 14:53

What were the 2017/18 codes that changed to 1185L in 2018/19?

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