§ Mr. Percivalasked the Chancellor of the Exchequer what steps are taken to ensure that when an employer is notified of a change in an employee's income 494W tax code number, the employee concerned is notified of the change in sufficient time to enable him to challenge the new coding, if he disagrees with it, before it is put into operation.
§ Mr. Denzil DaviesWhere a PAYE code number is altered and the change is to take effect from the start of a tax year, the notification to the employee is generally issued in good time for any disputes to be resolved before the tax year starts. A change in an employee's PAYE code for the current year is, however, sent to the employee and employer at the same time, and is put into operation as soon as possible after receipt by the employer.
There is provision for appeal against an amended current year code, but I do not think it would be desirable to delay the implementation of current year code changes pending the outcome of the appeal. The practical result would be either that the employee would have to wait longer for a tax refund or that he would have a larger underpayment at the end of the tax year.
If the hon. and learned Member has any particular case in mind I shall be glad to look into it if he will let me have the necessary particulars.