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Paye Tax Code

Hi Everybody

I have an employee whose tax code was 747L last year but now his yearly pay is 20K and i pay him monthly. I wanna know his new tax code, anybody here can guide me what should i do.

Regards

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13th May 2012 11:49

810L

In the absence of a notification from HMRC it would be 810L (i.e. 747+63). The pay isn't relevant.

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By zebaa
13th May 2012 20:54

But..

But without notification from HMRC the employer should NOT change the tax code. So the simple answer to your question is - do nothing.

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14th May 2012 00:03

Do something

zebaa wrote:

But without notification from HMRC the employer should NOT change the tax code. So the simple answer to your question is - do nothing.

The OP means the last PAYE tax year so what the OP should do depends on the tax code. The OP should read the HMRC website http://hmrc.gov.uk/paye/index.htm

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By alattax
13th May 2012 23:01

All codes with an L suffix increase by 63 points with no need for individual notification from HMRC. I think dnicholson is right the new code for 2012/13 will be 810L. 

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14th May 2012 10:47

Thanks

Thak you so much for you replies. Please also guide me what should i do to change my employees tax code. Also he doesnot have previous employer reference number , is this create any problem?

 

once again thanks for you guys and girls help

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14th May 2012 10:55

Why are you asking us?

Look at the HMRC website.

It's more sensible to read that and get a comprehensive understanding than asking random questions. We don't know what you know or what you don't know.

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By alattax
14th May 2012 11:58

There's more to this question than meets the eye.

I initially thought it was a straightforward question concerning the adjustment of your employees code on moving from one paye year to the next.

You inferred that you were the employer. Which tax year did he commence employment with you?

I assume there is no P45 as you say there is no old employers reference.

If he started last tax year then more than likely his code would have been 747L probably on a week/month 1 basis. The new code for this year then will be cumulative 810L.

If he started with you this tax year the code you have for last year is irrelevant. Get him to answer the questions on form P46 and work out his code from that.

But probably best to see a local accountant who can point you in the right direction, or deal with it for you.

 

     

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By zebaa
14th May 2012 12:53

@ Peter

Peter, my understanding of the correct procedure is as follows:

For employees for whom you haven't received a form P9 you carry forward the authorised tax code from their last year's form P11 or equivalent payroll record to their payroll record for the new tax year.

If I am in error please can you point me to an instruction to auto update, without notification.

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14th May 2012 13:40

P9X

The procedure is set out in the annual form P9X.

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14th May 2012 13:40

Generic uplift

A relevant extract from the guidance at http://www.hmrc.gov.uk/paye/payroll/year-start.htm says:

"The form P9X 'Tax codes to use from 6 April' gives details of any generic changes to your employees' tax codes. These changes are normally made because new tax rates, thresholds or allowances are coming into effect and will affect the amount of tax you'll need to deduct from your employees' pay from 6 April.

For employees for whom you haven't received a form P9(T) and for whom you don't have an unused P6 (see later sections):

carry forward the authorised tax code from their last year's form P11 or equivalent payroll record to their payroll record for the new tax yearapply the instructions from form P9X"

The 2012/13 version of the P9X refered to in the guidance quoted above can be found at http://www.hmrc.gov.uk/helpsheets/p9x.pdf and, as an earlier poster stated, it contains an instruction to uplift "L" suffix codes by 63 points in the absence of any specific instruction relating to the employee. So a code of 747L will change to 810L.

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By zebaa
14th May 2012 14:20

Thanks

Thank you. to both Euan and Neiltonks.

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14th May 2012 14:22

As above

zabaa

Do you use 3rd party software, HMRC software, online or paper?

 

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By zebaa
15th May 2012 14:19

The answer...

...to Peter's question is 2 out of the 4 options: 3rd party software & HMRC online.

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15th May 2012 15:03

3rd party software & HMRC online

3rd party software usually tells you what you need to do at the year end and before the start of the new year. This would include what you have to do regarding the tax codes.

HMRC also tell you online. http://hmrc.gov.uk/paye/payroll/year-start.htm

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