From 31 May 2017, employees will be able to use dynamic PAYE coding to adjust their tax code throughout the year.
In theory, this means they’ll be able to pay the right amount of tax on their income as they earn it.
However, HM Revenue & Customs has warned employers to expect more tax code changes throughout the year, increasing administrative duties as a result.
What will employers need to do?
- Apply adjusted tax codes before the next payroll is run
- Check National Insurance numbers are correct
- Send Full Payment Submission (FPS) files on or before pay day
- Submit Employer Payment Summary (EPS) monthly files before 19th of the next tax month
Need a helping hand?
Salhan Accountants is an award winning firm, trusted by hundreds of businesses to carry out payroll duties on their behalf, saving real hours and company resources. For a free, no-obligation meeting with one of our advisers, get in touch with us here.
