NatalieK

Could HMRC please provide comment on the following. Tax code allowances are determined using Pay Adjustment Tables that are published by HMRC and are the basis for all PAYE calculations whether performed manually or computerised. The tables can be found at https://www.gov.uk/government/publications/tables-a-pay-adjustment-tables Further specifications for software developers are provided by HMRC at https://www.gov.uk/government/publications/payroll-technical-specifications-income-tax I refer you to pages 3 and 68 of the main PDF found at the first URL where it confirms that for monthly paid employees, for each multiple of 500 of your tax code you receive £5000.04 of allowance with the remainder of your tax code receiving the amount given against the respective number. For tax code 1257L the total annual allowance would therefore be calculated as £5000.04 + £5000.04 + £2579.04 which totals £12579.12. If HMRC specifications determine that £12579.12 is the allowance due, and tax subsequently calculated using this value, why do HMRC use a much lower value of £12570? Surely HMRC should use the value that they publish in their own manuals and specifications?