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Codes deducting too much pay, claim firms

21 January 2013
Issue: 4387 / Categories: News , Employees , Income Tax
Payroll Alliance hopes to see 50% regulatory limit

Some employers are experiencing a problem with tax codes, according to Payroll Alliance.

The payroll management information service has reported that businesses have been issued with codes that appear to be incorrect because they deduct more than 50% of an individual’s net pay.

Under current PAYE regulations, only K tax codes carry a restriction to the amount of tax deducted. HMRC have discussed extending the situation to all codes but have so far done nothing to progress the matter.

Employers are invited to complete a three-question survey about their experiences in this respect. Payroll Alliance will submit the results in the hope it can persuade the Revenue to amend the regulations to the effect that all tax codes carry a 50% regulatory limit.

Another Payroll Alliance survey about real-time information preparation costs has had its closing date extended to 31 January.


Issue: 4387 / Categories: News , Employees , Income Tax
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