Your staff are likely to pay the wrong tax in April 2020

HMRC has advised that: because income tax thresholds and rates will now not be finalised until March, tax codes for 2020/21 will have to be initially calculated using 2019/20 rates and then revised as necessary after the budget.

In other words, your staff may have the wrong tax deducted as part of the PAYE process in April 2020, but this will be automatically corrected during the next one or two pay runs as HMRC issue their new codes.

• Posted on February 24th, 2020 in Payroll