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HMRC tax payment notifications

August 30, 2022

We have been made aware that a number of staff have received letters from HMRC regarding underpayment of tax due to earnings on bank positions that is causing some understandable concern. We have looked into this issue and are advised that it has come about because HMRC have automatically updated the ESR Payroll system with tax code changes, primarily linked to bank work.

Our advice is to contact HMRC to discuss these calculations as our own payroll team are not best placed to assist in this matter. Please note that:

  • The ESR Payroll system is automatically updated for any tax code changes issued by HMRC, the SWB payroll team do not see these before they are applied
  • HMRC are in receipt of all of the required earnings information, for all staff. Information is sent to them each month, in a nationally agreed format that includes (separately listed) substantive and bank employment values and tax paid
  • HMRC have used the earnings information provided to calculate any potential underpayments of Tax.

We entirely sympathise and understand these concerns. On contacting HMRC, they will be able to agree a process and timescale with you to repay any tax due in a manageable way and some colleagues have already been able to arrange this in recent days. For issues of financial hardship as a result, where you have not been able to arrange an affordable way forward with HMRC, please email our Chief Finance Officer Dinah McLannahan on Dinah.mclannahan@nhs.net who will be able to see if the Trust can offer any support. Additionally, the Trust is looking urgently at how we can best support colleagues in light of the significant increases in cost of living.

We urge all staff to check your payslips to ensure that the correct tax code is applied to all your posts with the Trust.

For clarity the usual tax code, which allows you to earn £12,570 each year free of tax can only be attached to your main employment. Any additional bank and secondary posts should have a tax code of BR attached to them. Please note that the £12,570 figure relates to the tax year 21-22 and is usually updated each year by HMRC. The figure £12,570 translates to a tax code of 1257L therefore unless HMRC have contacted you directly regarding any change to your free pay allowance, this is the tax code you should see on your payslip for the main post you hold only.

We therefore ask that you check your payslips for all secondary or bank posts you hold, to ensure it shows a tax code of BR. If it does not, you will need to contact HMRC directly to advise them of this.

When contacting HMRC, please ensure you have your National Insurance number. This is shown on any of your payslips.

HMRC main telephone:

0300 200 3300