Update an employee's tax code (P6 or P9)

When selecting Process pay run for the first period of the new tax year, Payroll will prompt you to review your employees tax codes. You can change them in bulk on this window.

For the 2025/2026 tax year, the personal allowance remains at £12,570. This means that the emergency tax code also remains at 1257L. 

 NOTE: Clear any Week 1/Month 1 flags for your employees before you process the first payroll of the 2025/2026 tax year.

This usually happens when:

• An employee's tax-free income (Personal Allowance) changes. For example, they start or stop receiving a taxable benefit like a company car
• A new employee has provided a P46, and HMRC inform you of the correct tax code

1. Log in to the government gateway.
2. From the Business tax account home page, select Messages. Select PAYE for employers messages.
3. Select View your Tax Code Notices.

1. Select Employees from the menu bar, and 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.

Tax code

1. Select Employees from the menu bar, 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 should provide this. If your employee doesn’t know their leaving date, use the date of the P6 form.
4. Clear or select the Week1/Month1 check box 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).