What is P6 Tax Code Notice ?

Have you ever received a P6 Tax Code Notice that didn’t make sense? You’re not alone. A P6 notice is issued by HMRC to update your tax code. The notice is usually sent to notice the business employing people. It is used to reflect the correct tax code so that HMRC can collect correct amount of tax from tax payer. But sometimes, it might seem incorrect.

What happens if you ignore it ?

What happens if you ignore it and go with what you believe is the correct tax code? Well, under RTI, HMRC will know you’re using a different code after the next payday. This could lead to an “educational visit” from HMRC. If this is not what you would like, let our PAYE experts guide you through for all you need to know about P6 Tax Code Notice. Talk to us if you need/

If tax code is incorrect, what you should do ?

But don’t panic! If you’re confident the code is incorrect, talk to your accountant. Your agent can write to HMRC explaining why and ask for correction. You can ask HMRC to reply directly to the employer or the concerned person.

Remember, employer may be asked to pay the shortfall tax if you ignore the P6 notice.

So, it’s crucial to get it right. If you’ve overpaid, you’ll get it back when you submit your Self Assessment return. So stay informed and don’t let a P6 notice catch you off guard! 

A P6 Tax Code Notice is important to ensure you and your employer pay the correct tax. If it seems wrong, consult your accountant promptly to avoid underpayment or complications with HMRC. Accurate action now can save headaches later.

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