P9X: Tax Codes

03 February 2021

The 2021 version of P9X (English and Welsh) are now available for employers which confirms the tax codes to change and which to carry forward for the new tax year on 6 April 2021.

Use P9X to find out which PAYE tax codes to change, how to change them and which codes to carry forward ready for the new tax year.

The document confirms that £12,570 will be the basic personal allowance.

New employees

Where an employee starts between 6 April and 24 May and provides a P45, follow the instructions at www.gov.uk/new-employee.

Where employers have agreed exemptions from online filing and operate a manual payroll, follow the instructions in the RT7, 'Guidance for employers exempt from filing real time information'.

Leavers

Tax codes do not need to be amended for employees leaving prior to 6 April, even if they will receive pay after that point – the old tax code should be used.

Where there is a payment after leaving, once a P45 has been issued, tax code 0T must be operated on a non-cumulative basis. It would be S0T for employees who had an S prefix in their code, or C0T for employees who had a C prefix in their code.

Employees without a new tax code

For any employees without a new tax code, the authorised tax code from 2020-21 should be used, and in scenarios where there is a ‘week1’ or ‘month 1’ marking, this should not be carried forward.

7 should be added to any tax code ending in L, e.g., 1250L will become 1257L. 8 should be added to any tax code ending in M, and 6 added to any tax code ending in N.

Employees with a new tax code

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

  • 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 payroll record
  • Update any tax codes where form P9(T), or other tax code notification, is received after payroll records have been set up

 


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