HMRC’s new interactive P2 notice of coding tool went live on GOV.UK recently. This new guidance has been produced specifically to support taxpayers and improve their understanding of tax codes. HMRC has also contacted us to advise that it is making changes to form P87(Income Tax relief for employment expenses) which will take effect from 21 December 2022.
P2 notice of coding guidance
The new P2 guidance allows taxpayers to select guidance linked to their needs and intuitively responds to the information they provide, with an explanation of their tax position. If any further action is required, it will give clear instruction on what needs to be done.
The guidance aims to improve taxpayer’s confidence in handling their own tax affairs and their ability to self-serve.
Changes to P87
From 21 December 2022, new additional information requirements for P87 forms include:-
- all the details in section 1, except for the title and contact phone number which are optional;
- employer PAYE reference number in section 2 – this is available from the Personal Tax Account, the HMRC app, P45 or P60;
- type of industry in section 2 if claiming flat rate expenses.
Any forms received on or after 21 December 2022 that do not include the required information will be rejected.
According to HMRC, these changes are being introduced to improve taxpayer experience as it takes HMRC longer to process forms without the required information, resulting in delayed payments. HMRC wants to pay taxpayers the money they are due as quickly as possible and ensure time is used efficiently.