Difference between revisions of "How do I change a tax code?"
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== Summary == | == Summary == | ||
This article will explain how to alter employee tax codes within the Payroll system. | This article will explain how to alter employee tax codes within the Payroll system. | ||
== More Information == | == More Information == | ||
| − | + | At the start of the tax year employees on an {{DataValue|L}} code will require an increase their current tax code by the notified amount ''(e.g. 1185L becomes 1235L when the notified amount is 50)''. This is done by using the "Global Tax Code Change" part of the system. | |
| + | |||
| + | Individual notifications should be sent to you by HMRC in the form of an email or '''P6''' form. Check from when they are effective and wait until you are in that payroll period before making the changes. | ||
| + | |||
| + | {{Warning|text=Towards the end of the tax year you may receive notifications to be used from period 1 of the new tax year. Do not enter these changes until you move in to the new tax year, unless directed to use the code immediately.}} | ||
| + | |||
| + | You can also log in to PAYE Online to view tax code changes for your employees. | ||
| + | |||
| + | For further more detailed information please refer to the [https://www.gov.uk/employee-tax-codes HMRC website]. | ||
| + | |||
| + | {{Warning|text=Tax Code Changes should be made in the period they are to be effective from and not before.}} | ||
| + | |||
| + | === Multiple Tax Code Changes === | ||
| + | {{Information|text=This option is usually only used at the start of a tax year.}} | ||
| + | |||
| + | {{Warning|text=The following instructions should be done '''BEFORE''' entering any individual tax code changes. For any employee for whom you have received a P6, their tax code '''MUST''' be checked and changed to match the form.}} | ||
| + | |||
| + | * Go to {{PayrollSettings|Global Tax Code Changes}}. | ||
| + | * Select the suffix you wish to change e.g. {{Example|text={{DataValue|L}}.}} | ||
| + | * Enter the amount you wish to raise it by in the {{DataPrompt|Allow.}} column. | ||
| + | * Press {{KeyPress|F2}} to view the proposed changes. | ||
| + | * All employees will be tagged as standard. This can be left as is or you can untag certain employees by pressing {{KeyPress|U}} e.g. {{Example|text=The ones with an individual tax code notice.}} | ||
| + | * Press {{KeyPress|F2}} to finalise the changes. | ||
| + | * Press {{Button|Tagged}} to confirm the change or press {{Button|Cancel}} to abort the changes. | ||
| + | |||
| + | === Individual Tax Code Changes === | ||
| + | {{Information|text=This option should be used to make individual tax code changes at the start of the tax year or when notified of a change during the tax year.}} | ||
| − | + | * Go to {{Menu|{{PR}}|Run Payroll Period}}. | |
| + | * Select the correct pay period from the selection. | ||
| + | {{Example|text={{DataValue|Monthly}} or {{DataValue|Weekly}}.}} | ||
| + | * Move to the employee in question. | ||
| + | * Press {{KeyPress|S-F10}}. | ||
| + | * Select the {{Tab|Tax, NI and Pension}} tab. | ||
| + | * Amend the {{DataPrompt|Tax Code}} and confirm the change. | ||
| + | * Press {{KeyPress|ESC}} and {{Button|Accept}} to complete the change. | ||
| − | + | === Week 1/Month 1 === | |
| + | An emergency tax code is only classed as such if followed by ‘W1’, ‘M1’ or ‘X’. Emergency codes can be used if a new employee doesn’t have a P45 but you should always follow HMRC guidance when you employ a [https://www.gov.uk/new-employee new employee]. | ||
| − | + | At the start of a new tax year, unless notified otherwise, ensure that {{DataPrompt|Week/Month 1}} is set to {{DataValue|No}} for each employee. | |
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== See also == | == See also == | ||
| + | * [[Payroll End of Year]] | ||
| + | * [[How to amend your Payroll Tax Bands]] | ||
* [[How do I run a payroll period?]] | * [[How do I run a payroll period?]] | ||
* [[Entering P45 Details/New Starters]] | * [[Entering P45 Details/New Starters]] | ||
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| − | {{KB_Tags|tax, | + | {{KB_Tags|tax code, tax, code, payroll, end of year, raise L codes, P6, new starter, P45, P46, new employee, procedure, year end, end of year}} |
| − | {{ | + | {{Guide}}{{Hint}}{{KB_PR}}{{ZN_Admin}} |
Revision as of 04:31, 27 February 2019
 |
This article or section is out of date and scheduled for a review. Be aware: Content may not match the current version of Platinum. |
Contents
Summary
This article will explain how to alter employee tax codes within the Payroll system.
More Information
At the start of the tax year employees on an 'L' code will require an increase their current tax code by the notified amount (e.g. 1185L becomes 1235L when the notified amount is 50). This is done by using the "Global Tax Code Change" part of the system.
Individual notifications should be sent to you by HMRC in the form of an email or P6 form. Check from when they are effective and wait until you are in that payroll period before making the changes.
 | Towards the end of the tax year you may receive notifications to be used from period 1 of the new tax year. Do not enter these changes until you move in to the new tax year, unless directed to use the code immediately. |
You can also log in to PAYE Online to view tax code changes for your employees.
For further more detailed information please refer to the HMRC website.
| Tax Code Changes should be made in the period they are to be effective from and not before. |
Multiple Tax Code Changes
 | This option is usually only used at the start of a tax year. |
| The following instructions should be done BEFORE entering any individual tax code changes. For any employee for whom you have received a P6, their tax code MUST be checked and changed to match the form. |
- Go to " Payroll Maintenance Options Payroll Settings Global Tax Code Changes".
- Select the suffix you wish to change e.g.
'L'. - Enter the amount you wish to raise it by in the "Allow." column.
- Press <F2> to view the proposed changes.
- All employees will be tagged as standard. This can be left as is or you can untag certain employees by pressing <U> e.g.
The ones with an individual tax code notice. - Press <F2> to finalise the changes.
- Press [Tagged] to confirm the change or press [Cancel] to abort the changes.
Individual Tax Code Changes
| This option should be used to make individual tax code changes at the start of the tax year or when notified of a change during the tax year. |
- Go to " Payroll Run Payroll Period".
- Select the correct pay period from the selection.
| 'Monthly' or 'Weekly'. |
- Move to the employee in question.
- Press <Shift+F10>.
- Select the [Tax, NI and Pension] tab.
- Amend the "Tax Code" and confirm the change.
- Press <Esc> and [Accept] to complete the change.
Week 1/Month 1
An emergency tax code is only classed as such if followed by ‘W1’, ‘M1’ or ‘X’. Emergency codes can be used if a new employee doesn’t have a P45 but you should always follow HMRC guidance when you employ a new employee.
At the start of a new tax year, unless notified otherwise, ensure that "Week/Month 1" is set to 'No' for each employee.
See also
- Payroll End of Year
- How to amend your Payroll Tax Bands
- How do I run a payroll period?
- Entering P45 Details/New Starters
