Create the new employee record

1. From the Employees tab, select Create Employee.
2. Fill in the Personal Details section.
   • Sections with an * are mandatory
   • If the employee hasn't supplied an NI number, leave the NI number box blank
3. Fill in the Contact Details section.
   • The email address is needed if you want to use Sage HR Essentials or email payslips
4. Fill in the Employment Details section.
   • Sections with an * are mandatory
   • You only have a Deemed Employee if Off-payroll working rules apply - IR35

Enter tax details

Your employee supplied a P45

1. Under Previous Tax Details, in the Starting Basis list, select Employee declaration: P45.

2. In the Circumstances list, select 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 6th April they have had another job. Or has received taxable Jobseeker’s Allowance. Or Employment and Support Allowance, or taxable Incapacity Benefit. The employee does not receive a state or occupational pension.
   C	Select this declaration if the employee currently has another job. Also select if they receive a state or occupational pension.

3. In the Tax Code box, enter the tax code from the P45 (box 6 on the form).
4. In the Leaving Date box, enter the previous employment leave date (box 4 on the form).
5. Clear or select Week1/Month1 to match the form (after box 6, but before box 7 on the form). If you select this check box, skip to step 10.
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 value from the P45.
8. In the Total Tax To Date box, enter the previous tax value from the P45.
9. In Current Tax Details section, enter the P45 tax code. Clear or check the week1/month1 box to match the P45.
10. If the employee is to be a Director, select the Is a Director box.
    • Enter the date the Directorship started
    • Select the Preferred calc method
    • Find out more about director's National Insurance (opens in new tab)
11. Select Save.

Your employee has no P45 or no NI number

1. Under Previous Tax Details, in the Starting Basis list, select Employee declaration: P46.

2. In the Circumstances list, select 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. Put the employee on a 1257L tax code.
   B	Select this declaration if this is the employee’s only job but since last 6th April they have had another job. Or has received taxable Jobseeker’s Allowance. Or Employment and Support Allowance, or taxable Incapacity Benefit. The employee does not receive a state or occupational pension. Use the tax code 1257L on a 'Week 1/Month 1' basis.
   C	Select this declaration if the employee currently has another job. Also, select if they receive a state or occupational pension. Use the tax code BR

3. In Current Tax Details section, enter the P46 tax code. Clear or check the week1/month1 box to match the P46 declaration.
4. If the employee is to be a Director, select the Is a Director box.
   • Enter the date the Directorship started
   • Select the Preferred calc method
   • Find out more about director's National Insurance (opens in new tab)
5. Select Save.