15/3/2010 POSTED BY BJW
Employers do not usually know how an employee’s PAYE code is made up – it’s just a number. However, with HM Revenue & Customs’ acknowledging a systems glitch last month causing many codes to be incorrect, employers may wish to remind their employees of the need to check their codes, query any discrepancies and not assume that they will be right.
Three common errors that have been identified by HMRC are where:
- a previous employment stopped some time ago but a coding notice is nevertheless sent for that employment (which presumably denies the taxpayer those allowances against earnings in a new job until the mistake is corrected);
- two notices have been sent from the same employment (e.g, where the employee has two payroll records that HMRC cannot differentiate); and
- code BR or D0 is issued for a continuing employment or pension.
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15/3/2010 POSTED BY PMW
There is a debate as to whether it is better to pay off a mortgage early or save the funds. This is against the background of very low rates of interest on savings.
There was article in the Sunday newspapers about a couple, who had invested in Isa’s since their inception and their funds are now worth in excess of £1m.
The worst thing is not to do anything as if provision for some form of savings is not made – magically – the money will never seem to be in the account at a later sage.
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