HMRC Tax Code Error Affected Employee Tax Codes in June 2025: What Employers and Employees Need to Know
HMRC has confirmed that a technical issue between 25 May and 11 June 2025 led to a failure in the correct transmission of updated PAYE tax codes (P6 notices) to some UK employers. The HMRC Tax code error has caused tax code discrepancies in June 2025 payroll runs, potentially impacting thousands of employees’ take-home pay.
Published by Alexander & Co | Expert Chartered Accountants and Tax Advisors
What Caused the HMRC Tax Code Error in June 2025?
Due to a system fault, some employee tax code updates were not sent correctly to payroll departments across the UK. This has resulted in some employees being taxed incorrectly in their June 2025 pay, sparking confusion and concern among both employers and workers.
HMRC Response and Fixes to the PAYE Tax Code Issue
HMRC has now resolved the issue, confirming that all affected tax codes are available for employers to download. Payroll and HR teams are urged to apply the corrected tax codes during their next regular payroll cycle.
Instructions for Employers: No Manual Corrections Required
Employers do not need to make any manual payroll adjustments, nor do they need to backdate or re-run previous payrolls. The HMRC system will automatically reconcile any discrepancies where possible. In most cases, employees who overpaid tax in June will see an automatic correction in their next payslip.
If applying the new tax code does not fully resolve the issue for certain employees, HMRC will monitor and correct the error later in the tax year by issuing updated codes.
Employee Guidance: How to Check If Your Tax Code Is Correct
Employees concerned about potential payroll errors caused by HMRC technical issue can check their current PAYE tax code using the HMRC app or online tax account. Most errors should automatically be corrected in their next pay. They should contact HMRC if they still believe their tax code to be incorrect.
HMRC Apologises for Payroll Disruption
HMRC has apologised for the disruption caused, acknowledging the extra burden on payroll and HR departments as well as the stress this may have created for employees.
“We’re sorry for the extra work this may have created for payroll and HR teams, and for any concern among employees who may have noticed discrepancies in their June 2025 pay,” said HMRC in a formal notice.
Key Takeaways for Employers Affected by the HMRC Tax Code Transmission Failure
- Download and apply the updated tax codes in your next payroll run.
- Do not make manual adjustments or contact HMRC; reconciliation is automatic.
- Reassure employees that most corrections will be applied in their next pay.
- Direct employees to the HMRC app or online portal to verify their current tax code.
- Advise any employee in financial distress to submit a complaint through the official HMRC portal for priority support.
Conclusion: Keep Calm and Apply the New Tax Codes
This incident highlights the importance of employees ensuring they check their payslips including their tax codes. While HMRC has acted to correct the problem. We also encourage employers to remind their employees to obtain access to their personal tax account, where they can check such details, including their personal tax codes.
Contact Alexander & Co
Any clients whom we undertake payroll work for can contact us in your usual way. If you are aware of an effected employee, please contact our payroll team. You can also use the contact form on this page. Alternatively, you can email info@alexander.co.uk or telephone one of our offices on either 0207 167 7220 or 0161 832 4841.
