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Add employee's New Tax Code Change / History Details

Use

The HM Revenue & Customs may instruct you to change an employees tax code using form P9, P6 or P6B. A P9 can be issued at any point in a tax year and will detail the new tax code and a start date. P6 and P6B are normally issued very early in the tax year and will detail the new tax code, an effective start date, pay from previous employment and the tax paid in previous employment.

When you receive any of the above instructions from the HM Revenue & Customs please enter the details on this screen.

Path

Employee > View/Edit Employee Details >View/Edit Link > Employee's Tax Code Details > View/Edit > Add New Tax Code

OR

Bureau Main Page > Admin Payrun > Enter > Employee > View/Edit Employee Details > View/Edit Link > Employee's Tax Code Details > View/Edit > Add New Tax Code

OR

Multi-Sites Payroll Starter > Head Office Details > Employee > View/Edit Employee Details >  View/Edit Link > Employee's Tax Code Details > View/Edit > Add New Tax Code

Fields Available

Fields marked with an asterisk (*) are mandatory.

• Tax Regime: If the employees wages need to be calculated according to the UK, Wales or Scotland payroll rules and regulations, then select the appropriate option from the drop down list
• New Tax Code: Enter here the new tax code of the employee provided by the HM Revenue & Customs.
• Form Issued: From the drop down list, select the form issued to you by HM Revenue & Customs to change the tax code of your employee.
• Previous Pay: If you received a P6 or P6B then enter the previous pay amount here. If you received a P9 then any values entered in the Add New Employee section will be displayed here.
• Notified Reference: You can enter the notified reference here.
• Week 1 / Month 1 Indicator: If the employee needs to be taxed on a week 1 or month 1 basis, then select Yes from the drop down list. When a code is operated on a week1 or month1 basis it is non-cumulative, which means that the employees "cumulative" earnings in the year are ignored when calculating the tax; instead tax is calculated only on their earnings in the current pay period. In other words, every time the employee is paid, the tax is calculated as if it were the first pay period of the tax year.
• Effective Start Date: Enter here the date from which this tax code takes effect as mentioned on the form issued by HM Revenue & Customs. The old tax code will be changed to this new one only on the effective start date and employee's pay will be processed according to new tax code. You can use the calendar button to enter the date.
• Date of Issue: Enter here the date, HM Revenue & Customs issued the tax code change notification form to you.
• Previous Tax: If you received a P6 or P6B then enter the previous tax paid amount here. If you received a P9 then any values entered in the Create New Employee section will be displayed here.
• Reference No.: You can enter the reference number here.
• Tax Code Change Reason: Enter here the reason for the change in tax code of this employee.

Associated Tasks

• Cancel: If you wish to exit this screen without saving the changes, click on this button.
• Save: If you are sure about all the entries and wish to continue, click on this button. You will be taken back to the Employee Tax Code Change/History Details screen, where all the changes can be viewed.

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