HMRC issues PAYE coding notices for 2010/11
HM Revenue & Customs (HMRC) has announced that it will send out the majority of P9 coding notices from next week.
Around 18 million P9 coding notices will be issued within the next month, with the majority planned to go out between 1 and 10 March, enabling employers to apply the codes in time for the April payroll.
Every year, employers need to update their employees’ tax codes because new tax rates, thresholds or allowances will affect the amount of tax that will need to be deducted from employees' pay.
Paul Samrah, a partner at top 20 UK accountancy firm Kingston Smith LLP, said: “Various income tax changes are planned to come into effect from 6 April 2011 including a £1,000 rise in the personal tax allowance to £7,475 and a drop in the higher-rate income tax threshold from £37,400 to £35,000.
“Most notices are issued electronically, so this should give employers enough time to apply the codes to the April pay and pensions. However, employers waiting to receive paper P9 notices may not have enough time to meet the April payroll, in which case, they will need to carry forward the authorised 2010/11 tax code to 2011/12.
“Employers who are expecting their new tax codes for the new tax year but do not receive them should contact HMRC for duplicates.”