The date sensitive tax code option allows you to enter an 'effective from' date when you enter an employee's new tax code.

Your software then applies the new tax code when the process date is on or after the 'effective from' date.

HMRC sends 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 electronically

The 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, you can 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 supply.

Notification received via letter

You can amend your employee's tax codes, and set the effective from date in the employee's record.

For help with doing this, visit our enter P6 or P9 details - tax code changes article.

Global changes

If you've got several employees with the same tax code and effective from date, use global changes to apply them all at once.

Find out more in our global changes: tax codes article.

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 before then.

When you make an employee a leaver and produce their P45, you need to enter the process date as the employee's actual leave date.