Employers may be interested to know about the latest action from a UK tax body, which is calling on members to indicate issues regarding pay as you earn (PAYE) taxation.
The Chartered Institute of Taxation (CIOT) commented that since the introduction of new codes, including different arrangements for both PAYE and national insurance contributions, people affiliated to its organisation have spotted "errors".
Once CIOT member raised the point with HM Revenue and Customs (HMRC), it admitted there have been problems.
Of particular concern to the body, which states that one of its key aims is "to achieve a better, more efficient tax system for all affected by it", were issues around pensioners’ tax codes and the Married Couple’s allowance.
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In both instances, it was either being omitted or the incorrect amount was included in the bill.
Employers under PAYE perhaps should be aware of new arrangements where late settlements may face a five per cent charge on top of their original amount. Should they not pay inside a year HMRC will add an extra five per cent.
By Colette Paxton
