Dynamic coding – yesterday was launch day, or was it?

Since last autumn when stakeholders begin to hear HMRC talk about a new approach to PAYE coding to be known by its project name PAYE refresh or dynamic coding we’ve been trying to spread the word to employers, agents and taxpayers that things were about to change significantly both in the volume of tax codes to be actioned and the impact of those changes on employees.

Originally we were told the change would launch from the start of the new tax year, then 31st May and now …. well it’s not quite clear. An HMRC speaker at the Payroll World Conference last week announced a delay to July, but it appears she was misinformed. There is now a limited time to listen to an HMRC webinar recording  designed to explain the changes to agents and it still references a May start date. So, whilst it would be good to know operationally when we might start to receive additional codes, and more importantly queries about them from affected employees, it’s clear that HMRC need to start using RTI data reported by employers in real time and changes to benefits/income sources reported by employees to effect tax code changes. So, if you weren’t aware of this development in PAYE it’s worth watching this HMRC webinar whilst it’s available. There are also You Tube videos and an employer support pack.