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lucytround
2nd March 2009, 12:10
I was under the impression that all tax codes were to have 60 added to them im September last year. Mine remained at 543L. I have spoken to the lady who does the payroll in my company, and said this was not the case.

I have googled it, and can find many references from 3rd party sites to this happening, but I cannot find anything on HMRC.

Does anyone know a link to HMRC notification of this so I can show it to her?

many thanks

elainec100@cheapaccounting
2nd March 2009, 12:32
I was under the impression that all tax codes were to have 60 added to them im September last year. Mine remained at 543L. I have spoken to the lady who does the payroll in my company, and said this was not the case.

I have googled it, and can find many references from 3rd party sites to this happening, but I cannot find anything on HMRC.

Does anyone know a link to HMRC notification of this so I can show it to her?

many thanks

you are right.

http://www.hmrc.gov.uk/employers/epa-basicrate.htm

RAL
2nd March 2009, 12:37
I was under the impression that all tax codes were to have 60 added to them im September last year. Mine remained at 543L. I have spoken to the lady who does the payroll in my company, and said this was not the case.


You have to get the payroll lady to change your tax code, otherwise you may have to wait longer to get tax refund from Inland Revenue. Just make sure she changes the tax code before she processes final payroll at end of this month.

Alison Jones
2nd March 2009, 12:38
That is unusual that this was not processed for you. I know sage payroll and I think HM customs themselves all sent mailings out re the change of personal code back in late August time in advance for the September change of code.

Alison

Lexpay
3rd March 2009, 16:23
You are as everyone has pointed out correct, I cannot believe the amount of organisations who pay for a piece of software and think that they can get someone in house to accurately calculate peoples pay!

An awful lot of companies are just not serious enough or dont realise how much is involved in payroll and how important it is to accurately calculate and pay over the correct amounts.

Sorry for rambling but I come across it all too often and regularily have to sort months worth of errors when taking on new payrolls..

Good luck in sorting this out, I hope they do it before year end so you get your tax back!!

Tom McClelland
4th March 2009, 07:50
Sorry for rambling but I come across it all too often and regularily have to sort months worth of errors when taking on new payrolls...

Well, on the other hand I often have to help people sort out months and months of errors where new 12Pay users have taken their payroll processing back from "professionals". So it cuts both ways.

If only outsourcing this rather easy task were any kind of guarantee that it were done right. Related to the specific subject of this thread I had a phone call in the last week from someone who was validating 12Pay by comparing it with the last year's results from the accountant who previously did their payroll. "Why is 12Pay getting the tax wrong from September onwards?" Turned out that the professional hadn't applied the +60 tax code, which our software had applied automatically in the appropriate month.

And you'd also be surprised at how often I get advice given to employers by accountants/tax-offices passed on to me, when in fact that advice is utterly wrong. A recent example was the accountant who told their client that SSP shouldn't be taxed.

Lexpay
4th March 2009, 08:51
Well, on the other hand I often have to help people sort out months and months of errors where new 12Pay users have taken their payroll processing back from "professionals". So it cuts both ways.

If only outsourcing this rather easy task were any kind of guarantee that it were done right. Related to the specific subject of this thread I had a phone call in the last week from someone who was validating 12Pay by comparing it with the last year's results from the accountant who previously did their payroll. "Why is 12Pay getting the tax wrong from September onwards?" Turned out that the professional hadn't applied the +60 tax code, which our software had applied automatically in the appropriate month.

And you'd also be surprised at how often I get advice given to employers by accountants/tax-offices passed on to me, when in fact that advice is utterly wrong. A recent example was the accountant who told their client that SSP shouldn't be taxed.

Yes dont get me wrong I agree with what your saying, my point is that some bookeepers & accountants offer payroll services but dont have the experience to call themselves professional providers and tend to under estimate what is involved, generally software providers give good updates, The SSP example is another common mistake I have come across before, I recently took on a payroll where the accountants had been deducting a £300 mid month advance Before tax for the past ten months on three employees they were not too happy to find they had underpaid a lot of tax. Anyway Im sure we could go on for ever, it does cut both ways and only goes to emphasise that a car is only as good as its driver so to speak.:)

Tom McClelland
4th March 2009, 08:56
We need a "Group Hug" emoticon. :D

The interesting thing about the SSP taxability error is that in the past I've often come across that one with people who were previously using the HMRC CDROM. Because there is no "makeup to gross" in the CDROM (or certainly there didn't use to be one) it is easy for people to enter the taxable pay and not include the SSP on it that they get from another part of the process. And the CDROM has no defence against this error.

Lexpay
4th March 2009, 09:14
We need a "Group Hug" emoticon. :D

The interesting thing about the SSP taxability error is that in the past I've often come across that one with people who were previously using the HMRC CDROM. Because there is no "makeup to gross" in the CDROM (or certainly there didn't use to be one) it is easy for people to enter the taxable pay and not include the SSP on it that they get from another part of the process. And the CDROM has no defence against this error.

Just goes to show that people should invest a little in using good software too if they are doing it in house, I suspect your reputation is on the line if your software doesn't hit the mark, can the same be said for HMRC? I cant begin to imagine what is involved in creating software to do payroll, I have used an aweful lot of software over the years often with large international companies who have paid tens of thousands, even these have many ongoing problems!