Tax accountants can now check PAYE tax codes online

Tax accountants and advisers will be pleased to learn that they are now able to check some of their client’s tax codes online.

The CIoT welcomed the news but warned tax advisers to tell their clients to inform them when they receive a new PAYE tax code so that errors can be picked up at an early stage.

HMRC has been having major problems with tax coding notices over the last few years and these have resulted in millions of taxpayers paying the wrong amount of income tax. This year around six million people will receive a rebate averaging £400, whilst about one million individuals will get a bill for an average £500 underpaid tax.

The online system is only available for taxpayers who file self-assessment returns and currently only shows tax codes issued after 10th October. The next main tax code run will happen early next year and agents will then be able see the full benefit of the viewing facility.

Tax agents have received a detailed note explaining these changes. An HMRC spokesperson said that moving more services to the web was part of the long-term plan to improve efficiency and reduce costs.

In the past, taxpayers have received their coding notices through the mail and accountants have had to rely on clients forwarding them so they could check any changes. Tina Riches, a director at the CIoT said the new system makes sense but tax advisers will still rely on clients to tell them if a new tax code has been issued.

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