HMRC issue new message about employers putting staff in wrong tax code | Personal Finance | Finance


HMRC has clarified the rules around tax codes after a query from a taxpayer.

An individual contacted the authority over X to ask: “Is there a way to report employer using wrong tax code and not changing it despite being informed about it several times including through emailing payroll?”

The tax authority responded initially to ask if the employer had confirmed they had received the tax code sent out by HMRC.

The worker said they had not made any progress down this route saying: “They keep saying it’s not their job and it’s employee’s responsibility.”

But HMRC spelled out that this is not the case. The group said: “It’s not the employee’s responsibility as you as the employee can’t process the tax code we’ve sent to be used. This is done by payroll.”

The customer elaborated on their frustrating situation. They explained: “The payroll has been informed months ago and didn’t reply nor changed it yet.

“I’m feeling stuck and ignored. Tax code has been wrong now for a very long time and I just want it sorted, can you advise how to make my employer changed it as they seem to be ignoring me?”

HMRC then asked the person what tax code their employer was using and what the new tax code is.

The person replied: “You have issued 1257L and they are using 1205L for over 2 years. I’m not sure if they received it from you, I’ve printed out a page from my online HMRC account and gave it to them. They still haven’t done anything.”

HMRC then asked the person if they had a Personal Tax Account and if so, what code was showing there.

They responded saying they do have an account and their code is 1257L. This is the most common tax code, meaning you are entitled to the full personal allowance.

HMRC responded: “This sounds like the employer haven’t received the correct code. You’ll need to call our helpline to request the code is reissued: 0300 200 3300.”

You can find your tax code on your payslip or on a P45 or P60, as well as online through your Personal Tax Account.

You can set up an account on the Government website, with the tool showing details such as your income tax estimate for the current tax year, your National Insurance number and your state pension entitlement.



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