On 16 January 2025, HMRC published new guidance designed for employees to check if their tax code is correct. This is not something that payroll professionals should be advising on so it is good that HMRC have produced this guidance which you may choose to pass onto clients.
The guidance points to many online resources and tools and is constructed in three sections:
Find out why your tax code has changed
This section points taxpayers to two online places where they can check how HMRC have calculated their tax code:
1. HMRC online services (the Personal Tax Account); or
2. The HMRC app which can be downloaded
Update your details if you think they are wrong or missing
This is an important section as it details a number of situations that may result in the employee having the incorrect tax code. The general advice in each section is that the taxpayer needs to update their details with HMRC:
Go paperless for tax code updates
Via either HMRC’s online account or HMRC app, taxpayers can elect to receive digital / paperless tax code updates rather than paper copies.
For Bookkeepers
HMRC calculate and issue the tax code which employers must use in the payroll system. It is not for employers / agents to advise on the tax code as we will seldom be in a position to know all of the information that is required.
Therefore, empowering taxpayers to take responsibility for their tax code is important and we are pleased to publicise this new guidance.