The way that HMRC deals with PAYE is changing. We will be introducing improvements that will help us operate the system more efficiently from April 2007.
The changes are to our internal processes, but they will make it easier
for individuals and employers to do business with us.
From April 2007, we are introducing an automatic process to change tax codes
during the tax year for benefits in kind reported by employers on form P11D
and P46Car. This means we will process the information quicker, update the
current year tax code immediately, in advance of settling the previous year’s
liability. Details of code changes will be notified by the normal process.
Employees will have more accurate tax deductions and employers will benefit
from our more accurate and timely handling of benefits in kind information
they have supplied, for example, a change in company car. These changes will
mean that employers get fewer enquiries from their employees about their tax.
From April 2007, we will also automatically bring together pay and tax information for an individual from forms P14, into a single total, irrespective of the number of jobs the individual has had during the year. This will enable us to more quickly check that the right amount of tax has been paid and reduce the number of enquiries we have to make.
There will be no change to National Insurance processing arrangements.
