The Big Problem with PAYE
Fri, 08 Oct 2010 15:13:00
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Most taxpayers pay their tax through the Pay As You Earn (PAYE) system. Whilst the principle of PAYE is simple the reality can be problematical! In our experience the most common and best avoided problem with PAYE is operation of Incorrect Tax Codes. Tax codes are the keystone of the PAYE system. Your tax code ultimately determines how much tax you will pay. The accuracy of your tax code depends on HMRC being supplied with correct information on a timely basis and the tax office processing it correctly. Best advice is to check your tax code and review it if you have a change of circumstances. For example, if you turn 65 or 75 and therefore qualify for age-related relief – then your tax code will need to be changed. The tax office may or may not do so automatically.  |
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