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Payroll Software: How to Update Employees Tax Codes for the New Tax Year

What HMRC requires you to do:

Employees without a new tax code

Carry forward the authorised tax code from the 2014 to 2015 payroll record to the 2015 to 2016 payroll record. Authorised codes inlcude BR, D0, D1 and NT. But if you have received a 2015 to 2015 tax code on a form P6 too late to use in 2014 to 2015 carry forward this code instead.

Add 60 to any tax code ending in L, for example 1000L becomes 1060L

Do not copy or carry over any 'week 1' or 'month 1' markings.

The payroll records for these employees are now ready for the new tax year.

Employees with a new tax code

Keep and use the form P9(T) or other tax code notification with the most recent date for each employee. Please:

  • scrap any form P9(T) or other tax code notification for the same employee with an earlier date
  • copy the tax code from the form P9(T) or other tax code notification onto your payroll record
  • update any tax codes where you have received form P9(T) or other tax code notification after you have set up your payroll records

The payroll records for these employees are now ready for the new tax year.

Automating these tasks with Carval Uniwage Payroll Software:

Tax code uplift

Go to Global Tax Code change from the Inputs Menu, the system will default to Tax code letter ‘L’ and enter ‘60’ in the Enter and increment value box then click OK.

Once the uplift has completed, you will not be able to select tax code ‘L’ again unless you close the screen and go back into it, this is to prevent you from applying the uplift twice.

If you make a mistake you can correct it by going back into the screen and increasing/decreasing the increment value again. If you need to decrease the value then just enter a minus figure.

If P9’s have been received for any employees they will automatically be excluded from this update.

You then need to go through the regular process of updating payroll with HMRC forms. (You can download a user guide here using the password provided in your April edition of the Carval CommUnity newsletter  >>)

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