Check your 2012/13 PAYE tax coding notice

HMRC anticipate that for the coming tax year, 2012/13, they will issue around 17 to 18 million PAYE codes to employees and pensioners. These began to be issued in mid-January and will continue to be sent out until March 2012.

The PAYE Coding Notices will apply to the new tax year, so from the 6th April and will tell you what tax code your employer or pension provider is going to use to deduct tax from your wages or pension.

If you are one of the 17 to 18 million people to be issued with a new PAYE code, both you and your employer/pension provider should receive a copy of the coding notice. On receipt of the notice, be sure to check it, as you could pay too much or too little tax if it is wrong.

If you think your code is wrong or if you do not understand it, contact HMRC. And, when you get your first pay packet after the new tax year starts on 6 April 2012, check your payslip to make sure that your employer or pension provider has used the same code as the one you have received.

If you do not receive a notice (or notices, if you have more than one job/pension), don’t panic as HMRC do not usually send you one if your circumstances have not changed and your code is simple. But you should still check your code is correct – check what code is being used (it should be shown on your payslips) and again contact HMRC if you need clarification.

If you have more than one source of PAYE income (job and/or pension), you might receive two notices of coding in the same envelope. Where you do have more than one source, check the codes on each of them and try to understand how they work together.

Useful Link:

For more information relating to 2012/13 tax code notices, check out this interesting article available on the LITRG website.

The MAGIC Accounts team are also on hand to help with any PAYE questions you may have.