I am aware that there are a signifi cant number of employees who do not retain the services of accountants and have incorrect code numbers – the Revenue seem to have a policy of reducing code numbers (which increase their tax take) on the assumption that the average employee on PAYE will be unaware of any overpayment of tax. I have therefore advised my clients to have all their employees check and if they have anything other than a basic 603L code number and that they are not aware of the reason for any differences they should either call their tax offi ce and check it out or wait until, they receive their P60 and use one of the many on line tax calculators.

From the employer’s point of view – if staff are incorrectly paying too much tax then it means that they be more inclined to query their gross wages thus adding pressure to costs.

(Likewise any taxpayers on self assessment should check that any tax refunds are being paid – HMRC can be slow to give money back)

PS: It also good practice to advise employees as to other benefi ts available – ones to check out are:

Child tax Credits
Childcare Vouchers
Early learning classes
Summer schools and activity clubs
Medical check ups