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
Replies (14)
Please login or register to join the discussion.
810L
In the absence of a notification from HMRC it would be 810L (i.e. 747+63). The pay isn't relevant.
But..
But without notification from HMRC the employer should NOT change the tax code. So the simple answer to your question is - do nothing.
Do something
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
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.
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.
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.
@ 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.
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.
The answer...
...to Peter's question is 2 out of the 4 options: 3rd party software & HMRC online.
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