HMRC to change PAYE system

Date: 12th June 2009

HM Revenue and Customs is to introduce improvements to its PAYE services in order to make tax codes more accurate.

The changes will mean fewer adjustments for tax overpaid and underpaid at the end of the year and will be achieved by transforming the system into a single-record service.

The Chartered Institute of Taxation (CIoT) described the planned changes as a "significant improvement" but warned that there would be unavoidable disruption during the system overhaul.

A CIoT statement read: "HMRC may not be able to deal with 'complex' PAYE inquiries during this period and members may therefore prefer to defer calling HMRC until the new system is operational."

HMRC has warned that disruptions may continue beyond the system change.

In a statement, HMRC said: "Some customers may see a delay beyond the end of July as we bring our records back up to date over the summer."

The work on the system is to take place from today (June 12th) to June 29th.