New tax code implemented too early

eileenfromplaistow

HMRC playing a blinder ( I used to work for them).
My husband's pension had a new tax code for month 11, which resulted in more tax. I had a look, and they had applied the tax code for 25/26.
The nice lady on the phone at pensions told us that HMRC sends all the codes straight to their computer payroll, and they now have to wait to go back to the correct code in month 12!
Obviously, he'll get the tax back, or more likely wait till next year for a refund, as I'm not confident they can get " fastest finger first" to do his job properly.

Nomunnofun1

eileenfromplaistow said:

HMRC playing a blinder ( I used to work for them).

The nice lady on the phone at pensions told us that HMRC sends all the codes straight to their computer payroll, and they now have to wait to go back to the correct code in month 

I think that the nice lady is being inventive with her explanation while blaming HMRC. It doesn’t work like that and there are strict mechanisms in place to ensure that a P9 (as opposed to a P2) coding notice is not operated too early. 

I have never heard of HMRC sending codes ‘straight to the computer payroll’ either when I (also) worked for HMRC or since. All communication is the other way. 

Have you? 

molerat

Doe his on line tax account show a change of code for this year or has he received a notice in the post ?  Most unlikely they have wrongly applied a code.  The more likely explanation is that his code for this year has changed due to estimated untaxed interest.

eileenfromplaistow

My first thought was that HMRC had been updated with an accurate state pension figure and adjusted accordingly, but nope. The code is exactly next year's, and she definitely said payroll was instructed directly by HMRC.
Savings interest - daughter's and grandkids, so negligible interest!

Nomunnofun1

eileenfromplaistow said:

My first thought was that HMRC had been updated with an accurate state pension figure and adjusted accordingly, but nope. The code is exactly next year's, and she definitely said payroll was instructed directly by HMRC.
Savings interest - daughter's and grandkids, so negligible interest!

OK - so ‘instructed’ as opposed to ‘straight to the computer’ 

I really don’t understand how this will be rectified in month 12 if that is the case. I remain convinced that pensions payroll has messed up. 

Hoenir

Nomunnofun1 said:

I really don’t understand how this will be rectified in month 12 if that is the case.

Reinstatement of the correct tax code. Job done. 

Nomunnofun1

Hoenir said:

Nomunnofun1 said:

I really don’t understand how this will be rectified in month 12 if that is the case.

Reinstatement of the correct tax code. Job done. 

Of course. However the premise appears to be that HMRC appear to have applied the tax code directly (as if it is they who operate the payroll) which would be news to me. 

Penguin_

We have had some of our staffs 2025/26 tax codes sent into SAGE in readiness for the new financial - however they only become active from the 6th April 2025 so are laying in the background at the moment. 

Nomunnofun1

Penguin_ said:

We have had some of our staffs 2025/26 tax codes sent into SAGE in readiness for the new financial - however they only become active from the 6th April 2025 so are laying in the background at the moment. 

As it should be. The new codes will be triggered after the final FPS is sent for 2024/25. 

noitsnotme

Nomunnofun1 said:

eileenfromplaistow said:

HMRC playing a blinder ( I used to work for them).

The nice lady on the phone at pensions told us that HMRC sends all the codes straight to their computer payroll, and they now have to wait to go back to the correct code in month 

I think that the nice lady is being inventive with her explanation while blaming HMRC. It doesn’t work like that and there are strict mechanisms in place to ensure that a P9 (as opposed to a P2) coding notice is not operated too early. 

I have never heard of HMRC sending codes ‘straight to the computer payroll’ either when I (also) worked for HMRC or since. All communication is the other way. 

Have you? 

Xero Accounting does indeed automatically update the employees tax codes based on the notices received from HMRC.  Not sure how it can change the code early though as the ones we have received always have the "effective date" set to the April 6th of the new tax year.

Here is a recent one received in Feb...

 

Nomunnofun1

noitsnotme said:

Nomunnofun1 said:

eileenfromplaistow said:

HMRC playing a blinder ( I used to work for them).

The nice lady on the phone at pensions told us that HMRC sends all the codes straight to their computer payroll, and they now have to wait to go back to the correct code in month 

I think that the nice lady is being inventive with her explanation while blaming HMRC. It doesn’t work like that and there are strict mechanisms in place to ensure that a P9 (as opposed to a P2) coding notice is not operated too early. 

I have never heard of HMRC sending codes ‘straight to the computer payroll’ either when I (also) worked for HMRC or since. All communication is the other way. 

Have you? 

Xero Accounting does indeed automatically update the employees tax codes based on the notices received from HMRC.  Not sure how it can change the code early though as the ones we have received always have the "effective date" set to the April 6th of the new tax year.

Here is a recent one received in Feb...

 

The important bit being ‘P9’ which are only issued in advance of the new tax year.