PAYE coding notices

More than 50% of the PAYE codes we see are incorrect.  Often the Taxman will include adjustments for a taxpayer’s rental income, dividend income and bank interest meaning that your employer will deduct extra tax from your wages to pay the tax on this other income.

We think it is worthwhile exercising your right to have these adjustments removed from your code.  At the worst it will delay the payment of the tax by up to 21 months but if your other income is less than in previous years it will mean you don’t pay extra tax only to have to claim it back from the Taxman several months later.