New tax code implemented too early

noitsnotme

[Deleted User] said:

noitsnotme said:

[Deleted User] 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. 

I was making the point that HMRC notices can automatically update a payroll system as you doubted it was possible.

[Deleted User] 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 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. 

[Deleted User]

noitsnotme said:

[Deleted User] said:

noitsnotme said:

[Deleted User] 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. 

I was making the point that HMRC notices can automatically update a payroll system as you doubted it was possible.

[Deleted User] 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 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. 

Yes - I appreciate that. It’s a new one to me! 

SVaz

As there are folks on this thread that run payroll, can I jump in with a question?

Does it matter if the employer final payment submission was sent on hmrc basic paye ( 30 seconds before)  the final employee submission?
There is no tax or NI to pay by employee or employer for this year so I’m hoping not.

There were 2 tabs open and must have been a delay on the employee submission going through so it went through after the FPS 🙄

It was done early as we are going away - I’m employer, Wife is employee, she does the books so it’s her fault 🫢

noitsnotme

SVaz said:

As there are folks on this thread that run payroll, can I jump in with a question?

Does it matter if the employer final payment submission was sent on hmrc basic paye ( 30 seconds before)  the final employee submission?
There is no tax or NI to pay by employee or employer for this year so I’m hoping not.

There were 2 tabs open and must have been a delay on the employee submission going through so it went through after the FPS 🙄

It was done early as we are going away - I’m employer, Wife is employee, she does the books so it’s her fault 🫢

No idea I'm afraid.  Xero does all the submissions automatically for us after we process the monthly pay.

penners324

[Deleted User] 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? 

Yes. Tax code notices can be done automatically between payroll system and hmrc

penners324

You should check your online tax account. Likely another explanation