HMRC send new tax code notifications in form P6 or P9. The steps you need to take depend on whether you've received the new tax code electronically, or in the post.
Notification received electronicallyThe IR secure mailbox allows HMRC to send tax code notifications and more directly to your software. If you've received any tax code notifications this way, it's easy to apply a tax code change notice from the HMRC mailbox > When you apply a P6 or P9 tax code notification from the IR mailbox, your software automatically applies the effective from date that HMRC supplied.
Notification received via letterYou can easily amend your employee's tax codes and set the effective from date directly in the employee's record. Find out how in our guide to enter P6 or P9 details - tax code changes & P45 values >
Global changesIf you've got several employees with the same tax code and effective from date, you can use global changes to easily apply these at once. Find out more in our global changes: tax codes guide.
What happens if the employee leaves?You may have applied a tax code change with an effective from date in the future, and the employee leaves your employment before the effective from date. To ensure that the correct tax code is displayed on their P45, when you process a leaver you need to enter the process date as the employee's actual leave date. Read an example > An employee leaves on Friday 6th and is paid for the last time on Friday 13th. The employee also happens to have a tax code change effective from Monday 16th in their record. In this case, if you were printing the P45 in Sage 50 Payroll on Monday 16th, you need to enter the process date as Friday 6th before you print the P45. If you left the process date as Monday 16th, the P45 would incorrectly display the tax code that's effective from the 16th. [BCB:257:UKI - Personal content block - John:ECB][BCB:138:Limitless - 50 Payroll - Process Pay Run:ECB]
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