P9X: Tax Codes

25 February 2020

The 2020 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 2020.

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 £12,500 will be the basic personal allowance for the whole of the UK (regardless of devolution), and there are no instructions in relation to a general uplift, as the rate remains unchanged from the current tax year. The CIPP would like to remind members that this threshold could still potentially change.

Note that for tax codes, Scottish taxpayers must be prefixed with S and Welsh resident taxpayers with prefix C.

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 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

Copy the authorised tax code from the 2019 to 2020 payroll record and use for 2020 to 2021 tax year, but do not carry forward any ‘week 1’ or ‘month 1’ markings.

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

 


Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information. Download the CIPP's Payroll: Need to know - your guide to payroll legislation and reporting for the most up to date data.