PAYE system improvements
HMRC have released a final update on the new PAYE system which was introduced earlier this year. The upgrade took place on 6 April 2010. The new system is designed to ensure that there is only one PAYE and national insurance record per employee no matter how many jobs, pensions and regions they are involved with.
The changes introduce additional automation to the process of checking the amount of tax paid by an individual for a year. This means that for most taxpayers the software will automatically check if too much or too little tax has been paid. The change will allow for faster reconciliation of records and reduce clerical involvement.
HMRC are also taking steps to ensure that the software takes into account incorrect PAYE coding notices issued earlier this year when making automatic calculations.