In the 2017/18 tax year, HMRC introduced dynamic coding to the PAYE system. The theory is that HMRC would receive an individual’s tax for such items as investment income sooner. This is done by HMRC estimating the extra tax people would pay and adjusting their PAYE code accordingly.
Unfortunately there are teething problems with dynamic coding. Some clients have had the amount of tax they have already paid via dynamic coding, charged again when they submit their tax return. Therefore if you receive a SA302 stating you owe more tax than anticipated, please contact us for advice.