By the end of this month HMRC should have completed posting out tax coding notices for the upcoming 2014/2015 tax year.
Taxpayers normally receive a copy of a tax coding notice, which is also provided to employers or pension providers. The notice provides tax codes, for each employment/income source, so the correct amount of tax is deducted.
For the tax year starting 6 April 2014 the emergency basic tax code is set at 1000L. This is equivalent to the new basic personal allowance for people born after 6th April 1948 - £10,000.
If a taxpayer receives a P2 PAYE coding notice they should check to make sure it is correct for their circumstances - HMRC can be contacted for an explanation of how the tax code was calculated.
Employers expecting to receive tax coding notices should have them in time for the new tax year, if not it is recommended to contact the HMRC employer helplines:
- New or Relatively New Employers : 0300 200 3211
- Older Employers : 0300 200 3200
- Hearing Difficulties : 0300 200 3212
Employees can contact HMRC about their tax code on 0300 200 3300 - or contact them online here.
Read our guide on tax codes for more information on how tax codes are calculated and how to correct incorrect information here