For the 2023/24 tax year, the personal allowance remains at £12,570. This means that the emergency tax code also remains at 1257L and you don't need to apply a change to all employees' tax codes. However, if you receive a P9 or P6 from HMRC, you need to update an individual employee's tax code.
You should also clear any week 1 / month 1 flags for your employees too.
Let's take a look at the steps.
Update an employees tax code
There are different steps depending on how HMRC contact you. You may receive a letter through the post, or an electronic message in the IR Secure Mailbox within Sage 50 Payroll.
Received a letter
- Double click the required employee on your employee list.
- Click the Employment tab.
- In the tax code box, enter the tax code HMRC has stated.
- Click Save
If HMRC have supplied a date that the tax code is effective from, click the + button, then add and enter this date.
IR Secure Mailbox Notification
- Click E-submission, then click IR Secure Mailbox.
- Select P9 notice.
- Click Apply.
The employee tax code will now be updated, and you can now clear the week1/month1 flag.
Clear the week 1/month 1 flag
- Select the required employees.
- Click Tasks then click Global Changes.
- Click Tax Codes then click Clear W1/M1 flag.
- Click Yes then click OK.
Simple, automated and all in one place
Manage your employees’ taxable benefits easily and accurately, with online submissions to HMRC. Deadline for P11D submission is July 6 2023.
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