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IM(limited)E tax codes tend to represent the year just gone, which may not be what the year ahead will look like.
They do, but you can enter a figure for how much you expect to earn in the current year on the HMRC website and they change your tax code accordingly. Which can be very helpful if you have a good (or bad) year.
andyp
Indeed.
Variable pay (bonuses, on-call payments, etc) mess with the calcs.
And at the end of the (tax) year you've then got P11D related things (various BIK things), plus stuff like the high-income child benefit charge, etc.
PAYE gets it mostly right if you're in the job for the whole tax year, but there's still a chunk of work to do each year. If you join/leave part way through then all bets are off, also if you've brought in previous wages/taxes via a P45.
IM(limited)E tax codes tend to represent the year just gone, which may not be what the year ahead will look like.