For the 2022/23 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 update 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 the employee too.
Let's take a look at the steps!
TIP: There are no separate increases for Scottish and Welsh tax codes and the following steps apply.
Update an employees tax code
There are different steps depending on how HMRC contact you, you either get a letter through the post, or a IR Secure Mailbox notification, please follow the relevant steps.
Received a letter
- Select the required employee and click the Employment tab.
- In the tax code box, enter the tax code HMRC has stated.
- Click Save
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.