iZero operates the Basic Rate tax code.
The BR tax code is the 'Basic Rate' of tax for the UK which is currently 20%, we use this 20% rate due to the fact that majority of the members signed up to iZero are also 'Self Employed' or have other Jobs at either permanent work places of other agencies. As we cannot determine what these other earnings maybe we have acted in good faith to ensure that the PAYE roles on the system are taxed at 20% so this mitigates the risk of any underpayments of tax throughout the year due to unknown earnings else where, hopefully saving the you (the members) any unknown tax underpayments at the year end.
For the members who are not 'Self Employed' but have this and or other employments, HMRC will issue a P800 calculation consolidating all income from all sources and the tax deducted from that income, this form is provided at the the tax year end 5 April. If there is an over payment of tax a refund is automatically generated.
For the 'Self Employed' members they will complete their SA100 (tax return) at the tax year end 5 April, these members will consolidate there income from invoiced works and any P60 information from employers. Once the tax return is completed a tax calculation will either show a tax amount due or a refund.
We are aiming to ensure that the members of iZero have not underpaid tax by the tax year end. By using the 20% (BR) tax we are trying to protect members from underpayments of tax due to unknown earnings from self employment or other income that iZero has no knowledge.
We provide HMRC with RTI reports of all stoppages for Tax, National Insurance, Student Loans and so on, they are aware of the tax stopped and as previously stated refunds will be made either on a P800 or a Self Assessment Tax Return.