Wrong tax code

Wrong tax code

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Please can someone help.

We use sage payroll and I processed the payslips a couple of days ago. An employee had a tax code of wk-m1 when he started employment in May but the tax code changed a few weeks ago to ???L so I should have changed his tax code to ???L for this months wages (December) which means his PAYE and NI will be wrong in December.

Can someone tell me what I will need to do for his January's wage?

Thanks guys!

Replies (5)

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Euan's picture
By Euan MacLennan
21st Dec 2014 12:02

Just use the cumulative PAYE code in January

HMRC sometimes send PAYE coding notices only to the employer or only to the employee, but if he received his coding notice and asks why you didn't implement it in December, you could lie and tell him that you had not received the employer's coding notice before you ran the December payroll.

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Replying to RedFive:
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By ngocky
21st Dec 2014 12:13

Thanks for your response euan! However what adjustments if any, do I need to make with his pay etc in January 2015 since his tax code was wk-m1 in December.

Will I need to adjust his tax for January payslips.

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RLI
By lionofludesch
21st Dec 2014 12:10

Bad luck

If you've already run the payroll, leave it till next month.   Don't worry about it.

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RLI
By lionofludesch
21st Dec 2014 12:31

No need to worry about December.

The software should get the tax right automatically without any special input from you beyond changing his code.

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Replying to djn24:
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By ngocky
21st Dec 2014 16:01

Thanks all for your responses. Glad that I don't have to make any adjustments in payroll in January! I think I will let sage automatically adjust it but thanks so much for the offer basil of working it out for me!

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