PAYE Coding

The Code
PAYE can prevent a large tax bill, or refund at the year end as it works out the tax you owe as you go along. A code number is sent to your employer which informs him how much tax should be taken off you. This number can also be adjusted to collect the tax due on other income you have which can avoid a year-end tax bill.

71%!
From a recent National Audit Office Report, it appears that the Taxman’s rate of accuracy in calculating tax codes is only 71%, that’s almost three out of ten people with incorrect codes, so don’t rely on the Taxman to get your PAYE code right too much.

If you ask for any items not related to your income to be removed from your PAYE code then you will have to provide details of other income via your tax return.