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How do I set a person's tax code?

Setting tax codes2:06

"How do I set a person's tax code?"

Before a person can be paid, you first have to enter their tax code.

To set a person's tax code:

  1. First, select the person on: MenuPeople
  2. Then click: TaxTax settings
  3. If you already have the person's tax code from their P45, type it in the box.
  4. Or instead, click Examples, and select a tax code from the list.
  5. For whatever tax code you enter, you'll see that the note explaining what the new tax code letters mean is automatically updated.
  6. And finally, click: Save

Keep in mind that:

  • All tax codes are two to seven characters long, and are set by HMRC.
  • Tax codes affect how much income tax is taken off a person's pay.
  • If the tax code's wrong, the amount taken off may be too much or too little tax.

For advanced usage:

  • You can find a person's tax code on past paystubs, tax forms, or letters from HMRC.
  • If a person can't find their tax code, or their situation's changed, ask them to call HMRC on: 0300 200 3300
  • Also, occasionally HMRC may send a change to a person's tax code, through an: "HMRC notice"
  • If HMRC sends an "HMRC notice", the person's tax code is automatically updated. You won't have to do anything.
  • Any time a person's tax code is automatically updated from an "HMRC notice", two emails are sent. One email to the person, and the other email to their pay batch's payday admin.

To learn more:

And that's it! That's everything you need to know about setting a person's tax code!

Updated: Thu, Oct 19, 2023.

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