HMRC Finds A Coding Glitch

You may have heard that HMRC have recently implemented a new PAYE computer system – good news in the long term, but during the changeover process HMRC identified one or two technical discrepancies which have resulted in some incorrect tax coding notices being issued.

While somebody somewhere in the depths of HMRC is no doubt busily fixing this glitch, official guidance has been on how contractors might be affected – here it is in a nutshell:

  • A coding notice could be sent to you relating to employment that you left some time ago
  • Two notices could be sent to you relating to the same employment
  • You could unexpectedly receive an incorrect tax code, such as BR (basic tax) or DO (higher rate tax), which could result in you over-paying, unless you spot the mistake and contact HMRC

If you have any queries about how this might affect you feel free to drop us a line or check out HMRC’s website (