Changes in updating PAYE Tax Codes - EA Assist
EA Assist Ltd offers payroll and bookkeeping services throughout Norfolk and Suffolk. We provide a complete payroll service including CIS, RTI and Auto-enrolment along with Bookkeeping, VAT and Cloud accounting services.
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Changes in updating PAYE Tax Codes

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Changes in updating PAYE Tax Codes

Changes in PAYE Tax Codes

From the beginning of July 2017 the government will be improving the way taxpayers pay tax through their salary and wages under PAYE.

Historically Tax Codes changed at the end of the year but if you have a change of circumstances within that year you could pay too much or not enough tax.

Because all employers now file regularly with HMRC, records are kept up to date and HMRC will be made aware of changes in circumstances straightaway.

The new system means if you do have a change in your tax code will be updated in real time, resulting in the correct amount of tax being applied from the moment your circumstances change and removing the issue of unpaid or overpaid tax accumulating during the tax year.

Facts from HMRC

  • around 8 million customers underpay or overpay their tax each year
  • two-thirds of these customers (5.5 million) overpay tax, of which just over 50% are the lowest paid, earning under £15,000 a year
  • the old system can take up to two years for an individual’s tax account to be balanced after an underpayment has occurred

Most tax payers will not see any change but it will prevent under and over payments from building up over time.

If you struggle to keep up with the changing world of payroll and would like someone else to complete this essential task for you then give EA Assist a call.

We can provide a complete outsourced payroll service freeing up your time so you can concentrate on running your business. Read more about our payroll service here.

Call us now on 01379 646943 or email us at info@ea-assist.co.uk