The Gabem Blog:
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Hello everyone, Sarah here with some payroll news to help kick off the new year with a little excitment.

There has been much to-do in the media this week regarding an outbreak of tax code amendments for the new tax year, starting in April.

It is being said that when HMRC brought in big improvements to their systems in July 09 there have also been some unwanted side effects. The media are reporting that ‘old’ employment records, where P45s have been issued and the employment has ended, are sometimes being shown as still ‘current’. This can lead you to be in several employments at once. Where this has happened HMRC have followed their normal procedure and either split tax free allowances across all employments or put all the allowances on just one employment record and have applied either a basic rate or higher rate tax code to the other. If, by chance, your allowances are on your ‘current’ employment you may not lose out but the real risk is that you don’t get the benefit of all the allowances you are entitled to and could then pay too much tax. It also could have the effect of making you look like you are earning more than you actually do, not something that you would wish HMRC to think.

We have already had queries from a few people that have received two coding notices so it is certainly occurring but it is too soon to tell how many people this will affect. The general advice is to closely check any documentation you receive from HMRC and, with the current carry-on, do so as soon as your receive it.

If you receive just one coding notice ensure it quotes ‘Gabem Management Ltd’ as your employer. If there is any change in the code, either up or down, the reasons why will be listed. If you disagree with any of them you should ring HMRC, using the number on the letter, and query it with them. There is still plenty of time to get it sorted before the new code comes into action so no need to be overly worried but dealing with this sooner rather than later is best.

You may receive two [or more] notices and this may be correct if you have another job or a pension etc. Again, check the details carefully and contact HMRC if you disagree with anything. However, if the press are right a lot of you may well be receiving 2 notices, both quoting Gabem. One will say ‘Gabem Management Ltd’ and be from the Salford office quoting a tax reference starting 951, the other will probably be for the Gabem company you were with before October 08, so something like‘Gabem 545454 Ltd’ with the numbers in the middle varying for each individual. This will be from the East Kilbride office with a tax reference starting 334. All Gabem employments for companies that were registered at East Kilbride/334 have ended and had P45s issued, the majority in October 08. In this case you should ring the East Kilbride office and confirm your current employment details, if you are using Gabem’s umbrella service now you are an employee of ‘Gabem Management Ltd’ and your tax reference is 951 G7008. HMRC will then be able to make sure their records are correct and up to date, issuing a new coding notice if necessary.

If HMRC have issued a new notice for you this will also be issued to Gabem, usually sometime during February or March. Don’t worry if you have sorted out any confusion and had a corrected coding notice issued. Only the newest will be applied when the new year starts in April.

I hope this helps you sort out any kerfuffle.

Sarah
@GabemUmbrella
29/01/2010