P46 which code to use

It may be impossible to issue a P45 on that day, so there may be a gap between leaving and the final payroll run. If an NT code is in operation do not change this to an 0T code for a leaver. Starters: P45 flowchart Use this flowchart to determine the tax code to use for a new employee where they provide form P Is the employee's P45 leaving date in the current tax year? Are you enjoying our content?

Comments 0. Rated 0 out of 5 based on 0 voters. There are no comments posted here yet. Leave your comments. Part of Employ someone: step by step. Tell HMRC about a new employee.

Get employee information You need to get certain information from your employee so you can set them up with the correct tax code and starter declaration on your payroll software. The P46 form is no longer used. Print entire guide. Step 1 : Check your business is ready to employ staff.

Prepare your business to take on employees. Step 2 : Recruit someone. Find out about recruiting someone yourself on Acas Find out about using a recruitment agency As an employer you must make sure you recruit employees fairly. Avoid discrimination during recruitment Make your application process accessible for employees with disabilities or health conditions. Last reviewed 25 June Skip to main content. Printable version. As you have confirmed that you are receiving income from elsewhere, the assumption is that you are already receiving your tax free personal allowance against that other source of income.

This code should be correct if you are a basic rate taxpayer and all of your personal allowance for the year is being fully used against earnings from another employment or pension. If you have not got enough income from this other job or pension to cover all your tax free pay, then you should contact HMRC on the Income Tax Helpline as this is quite a complex issue, it is probably better to phone HMRC rather than contact them via the on-line form; you will need to give HMRC an estimate of your expected income from each job or pension, and update this if your circumstances change.

It takes account of the basic rate, higher rate and additional rate tax bands. So the rate of tax increases as earnings increase. This will only affect people whose earnings in a pay period exceed the basic rate tax band. For your only or main job, an 0T code will not produce the right result, as it does not give you any tax free pay.