Change their tax code

1. From Employees, select the relevant employee.
2. Under Current Tax Details, enter the new Tax Code.
3. If required, select or clear the Week1/Month1 checkbox.
4. Select Save.

Enter their previous pay and tax

If a new employee has provided a P46, you may receive a notification from HMRC to inform you of their new tax code. In this case, you also need to enter details of previous pay and tax.

1. From the Previous Tax details section, choose Employee declaration P45

2. From the Circumstances list, choose one of the following options:

   A	Select this declaration if this is the employee’s first job since the last 6 April. They also didn't get taxable Jobseeker’s Allowance or Employment and Support Allowance. Also no taxable Incapacity Benefit, or state or occupational pension.
   B	Select this declaration if this is the employee’s only job but since last 6 April they’ve had another job. Or has received taxable Jobseeker’s Allowance. Or Employment and Support Allowance, or taxable Incapacity Benefit. The employee doesn’t receive a state or occupational pension.
   C	Select this declaration if the employee currently has another job. Or select if they receive a state or occupational pension.

3. In the Tax Code box, enter the tax code from the P6 or P9.
4. In the Leaving Date box, enter the previous employment leave date. Your employee should provide this. If your employee doesn’t know their leaving date, use the date of the P6 form.
5. Clear or select the Week1/Month1 check box. If you select this check box, skip to step 12.
6. In the Final Pay Period list, enter the week or month of the employee’s final pay run in their previous employment.
7. In the Total Pay To Date box, enter the previous pay from the P6 or P9.
8. In the Total Pay To Date box, enter the previous tax from the P6 or P9
9. Save your changes.
    NOTE: The employee's Status will change to Starting this pay run (P45 Part 3). 

Next time you process this employee’s payments, the tax due calculates using the employee’s new tax code. And if the tax code is cumulative, the tax year values to date. 

 CAUTION: A 'Tax code invalid' message may mean you’ve entered an X in the Tax Code field. An X means the employee is on a week1/month1 basis. You only need to tick the week1/Month1 box. Don't enter X into the tax code field.