We understand that HM Revenue and Customs (HMRC) has begun the process of issuing 2016/17 tax codes and some of you may already have received yours.
Where you have received a 2016/17 tax code, you may find that it includes a restriction to collect tax on estimated bank interest, other income and dividends to be voted in the 2016/17 tax year. This estimate is based on income included on your 2015 Tax Return. However, any additional tax due on 2016/17 income is not due and payable until 31st January 2018 and, by adjusting PAYE code numbers in this way, HMRC will be collecting tax well in advance of the due date. Furthermore, these income levels could be hugely different to those received in 2014/15, and it may therefore not suit everyone to have the additional tax collected in this way.
To have the restriction(s) removed from your tax code, please proceed as follows:
1. Call HMRC on 0300 200 3300.
2. (a) Quote your PAYE reference number, which can be found on the tax code.
(b) Quote your National Insurance number, which can also be found on the tax code