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PAYE

Volume 506: debated on Monday 22 February 2010

To ask the Chancellor of the Exchequer whether an individual's PAYE case is automatically cleared when HM Revenue and Customs (HMRC) does not receive back an employment history enquiry; and how many PAYE cases were cleared after HMRC received back an employment history enquiry from individuals in (a) 2006, (b) 2007, (c) 2008 and (d) 2009. (316119)

Pay-as-you-earn (PAYE) aims to collect the right amount of tax each year through the PAYE tax code, which is based on the latest information available to HM Revenue and Customs (HMRC).

Where an individual’s employment history appears incomplete HMRC will ask the customer for their employment history either during or at the end of the tax year. If the individual does not respond then the tax code will continue to be based on the most current information available and the case cleared at the end of the tax year.

Customers are encouraged to use the information provided on HM Revenue and Customs’ (HMRC) website at:

www.hmrc.gov.uk/income/tax-codes.htm

to help them understand their PAYE tax code. If customers have concerns or believe they are being wrongly taxed, they should contact their tax office, which will be able to make any appropriate adjustments irrespective of whether the case has been cleared.

Information on how to find your tax office is available at:

http://search2.hmrc.gov.uk/kbroker/hmrc/locator/locator.jsp?type=l

The information requested is not available, as HM Revenue and Customs’ systems do not capture details of the number of PAYE cases cleared following receipt of a completed employment history inquiry form.