Tax codes are determined by HMRC and it’s not uncommon for aggressive tax codes to be applied as a precautionary measure by HMRC. This can result in smaller net payments in the short term, but throughout the course of the financial year, income tax will always balance out to the correct figure, either in the employee’s future payroll or as a tax rebate issued directly by HMRC.
Compass does not have the authority to manually alter an employee’s tax code without receiving prior instruction from HMRC, so we advise employees to call HMRC on 0300 200 3300 if they believe Compass has used an incorrect tax code when processing a payment.
Once Compass receives an updated tax code from HMRC, your year-to-date tax will be recalculated and a rebate will be issued if previous tax overpayments have been made.