There is a change this year to the tax code for new and leaving employees. In the past, when you took on an employee without either a P45 or P46 a tax code of "BR" was applied. The "BR" code meant that tax was deducted at the "Basic Rate" of 20%.
The new code which applies is "0T". This means the employee is not entitled to any tax free allowances. There are similarities in how the employee's pay is calculated using the 2 codes, but also areas of difference.
Employers can be held liable for any shortfall in tax resulting from applying an incorrect code.
HMRC has also announced that it intends charging penalties and interest on late or under payments of PAYE & national insurance.
If you would like advice on this, call Graham at Inca - the caring accountants.
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I love Abingdon and am passionate about promoting the businesses and events that are centred there. I want everyone to realise how great they are and how we should all be using them!