Tax codes to use from 6 April 2015
The P9X form used to notify employers of the tax code changes for employees has been updated and will take effect from 6 April 2015. The basic personal allowance for the tax year starting 6 April 2015 will be increased to £10,600 and the tax code for emergency use will be 1060L. As a result of the increase in the basic personal allowance, there will be a general uplift of tax codes with suffix ‘L’. Employers should add 60 to any tax code ending in L, for example 1000L becomes 1060L.
HMRC will also begin the process of issuing individual tax codes for the tax year starting 6 April 2015. Employees and employers should receive the notification by the end of March 2015.
The P9X (2015) form also includes details to help employers prepare for the new tax year. For example, the document reminds employers that they will need to prepare a payroll record, identify the correct tax code to use in the new tax year and enter the correct tax code on the payroll record for each employee.
Employers that use Real Time Information payroll software should ensure that the software is up to date and will automatically reflect the Income Tax changes from 6 April 2015.