How to process a P6 tax code notice
Description

HMRC will send a P6 notice during the tax year. This happens when a new employee has joined on a P46 basis, and HMRC will inform you of the correct tax code and previous pay.

Cause
Resolution

Tax code

  1. Select Employees from the menu bar, then 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 Year to date

  1. From the Previous Tax Details section, change the Starting Basis to Employee declaration: P45.
  2. In Circumstances, choose the relevant option.

    ▼Circumstance explanation
    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 Leaving Date box, enter the previous employment leave date. Your employee provides this. If your employee doesn’t know their leaving date, use the date of the P6 form.
  4. Clear or select the Week1/Month1 checkbox to match the P6.
  5. Select either Week or Month in Final Pay Period. This represents the employee’s final pay run in their previous employment.
  6. In the Total Pay To Date box, enter the previous pay from the P6.
  7. In the Total Tax To Date box, enter the previous tax from the P6.
  8. Select Save.
     NOTE: The employee's Status will change to Starting this pay run (P45 Part 3). 

Using the HRMC notices feature

You now have access to HMRC notices in Sage Payroll. Once enabled, the system can check for new notices from HMRC automatically. You can review the details and then apply them.

For more information, read:

Steps to duplicate
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