2017/18 PAYE notices of coding – any problems?

HMRC has now almost completed the annual run of 2017/18 PAYE notices of coding. 


The Tax Faculty would like to receive members’ comments on the coding notices and the associated processes.


The format of the coding notice is almost unchanged this year, following a significant revision to a consolidated format in late 2015. Do you have suggestions for further improving the format?


Initial reports suggest that there are continuing issues with the accuracy of adjustments for interest and dividends. Is this your experience?


Details of tax codes for clients in self assessment should be visible through the agent portal. Is this proving to be the case and are they showing under the correct year tab?


Have you used the online form 2017-18 Tax code – structured email to request an amendment to a notice of coding? If so, was it was actioned correctly and speedily?


This online form is no longer available to individual taxpayers who are encouraged to request tax code changes through their Personal Tax Account. We continue to press HMRC on the fact that agents do not receive details of tax codes for taxpayers who are not in self assessment and cannot access their clients’ Personal Tax Accounts. HMRC has indicated that it intends to give agents this access (via commercial software) but as yet there is no time scale for introducing it.

  • I have an issue with the incorrect coding of married couples allowance where it is coded to give relief at 20% rather than 10%. I am told this is a programming error and is being looked into but I seem to get a different version of events every time I ask about it. Also, on my last query about this problem, when trying to correct the matter, the computer disallowed the transfer of the full minimum allowance to my clients wife. Now I am told this is a computer error aswell.
  • Friend has 2 small pensions each less than £500 each+State Pension+Drawdown Pension of which only some £10K is left. HMRC have managed to code transferred allowances twixt Wife and Husband correctly, coded out State Pension and then coded both small pensions at Std Rate (BR), giving all surplus allowances to Drawdown Pension which is drawn spasmodically, whereas the 2 small pensions are paid monthly. We have tried 7 or 8 times to deal with this through his personal log-in: every time their damned computer says it has amended the codes as instructed, but it has not done any such thing. He has called them twice about it and the people at HMRC do not seem to understand the problem or how easy it is to sort it out (he has sent the split of codings in 8 times now and they still can't see it!) So for the present he is paying tax monthly when there is a great pile of unused allowances on the draw-down fund.

    AND THEY WANT TO MAKE TAX MORE DIGITAL??? For the sake of our sanity they MUST be fit for purpose in these simple things before we give them any more power to impose their wishes.

    Also, this is just one area of "experience" where things are wrong, and they don't care enough to sort things out (because they wrongfully STEAL taxpayers' money and we all have to plead to get it back.
  • I am receiving a spate of 0T codes for 17-18 for various employees for various different company payrolls. Based on the employee circumstances there should be no reason for a 0T code and I'm wondering whether there is a glitch in the system. I would like to post this up to the HMRC Forum but despite the answer to "how to post" I still cannot seem to make a post.
  • With effect from 6 April 2017 we changed our bureau payroll software supplier from Sage to Moneysoft. HMRC have issued new coding notices, several to 0T, because its computer apparently thinks that the employees now have two sources of earnings from the same employer. We have been able to correct the code numbers of the directors we act for, but not for the employees. The PAYE helpline tells us that the employees will have to contact them direct to correct the position - not very easy when most of them do not understand PAYE and, in many cases, English is not their first language.
  • We have experienced several instances where coding notices have been issued to clients who are in Self-Assessment but there is no trace of them on the self-assessment record accessible through the agent portal. Staff on the agent helpline are apparently unable to explain why this is and, despite agreeing to amend the issued code in accordance with our requests have been unable to do so. The reasons for the codes being issued in the first place has not been apparent either but seems to be connected with HMRC dealing with PAYE not being aware that the client is in Self Assessment.