If HMRC sends you a P9 or P6 notification to change an employee's tax code, you need to apply it in your software.

When a tax code notice has an X after the code, this means you need to set the week1/month1 flag.

There are different steps depending on when the tax code is effective from. Follow the relevant steps below.

Tax code effective immediately

1. Select Payroll in the bottom left.
2. Double-click the required employee on your employee list.
3. Go to the Employment tab.
4. Enter the new tax code in the Tax Code field.
5. If applicable, select the Week1/Month1 Basis checkbox.
6. Select Save then Close.

Your software uses the tax code you entered from the next pay period you process.

Tax code effective from a future date

1. Select Payroll in the bottom left.
2. Double-click the required employee on your employee list.
3. Go to the Employment tab.
4. Select the + button beside the Tax Code field.
5. Enter the details:
   • Tax Code - enter the new tax code in this field
   • Week1/Month1 - select this checkbox if the new tax code is on a week1/month1 basis
   • Effective From - enter the date the new tax code is effective from
6. Select OK then Close.
7. Select Save then Close.

Your software automatically applies the new tax code in the correct pay period.

This occurs in the first period where your Process date is on or after the tax code Effective From date that you entered above.