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Updating Employee Tax Codes

Each employee gets a new or updated tax code at the start of the tax year. This determines how much tax to deduct from their pay throughout the year.

When you process your first pay run in the new tax year, a message appears prompting you to confirm your employees new tax codes.

From 6 April 2015, all employees with an L suffix tax code increase by 60, for example, 1000L becomes 1060L. Unless you receive changes to tax codes for individual employees using form P9 from HMRC.

To update your employee tax codes

  • 1. Process your first pay run in the new tax year.
  • 2. Prepare Employee Tax Codes for Tax Year 2015/2016 window appears > Check each employee in the list to make sure their new tax code is correct.
  • 3. Click Save.

Week1/Month1 settings will be removed automatically in accordance with HMRC guidelines.

Employees whose tax code can’t be updated automatically
  • Manually change the relevant employees’ tax codes in their employee record.

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