Tax Codes for new employees

[easiprint]

Need some help with what are probably silly questions, but here we go.

We have just taken on our first employees (what a headache it is). We have two employees, and my question is, how do I know what tax code to put them on?

Employee 1 - working full time (35 hours a week) for us. Was unemployed for a few weeks before starting with us, but has lost his P45, so have no idea what tax code to use for him.

Employee 2 - working 18 hours a week for us as a second job. They already have another job which is their man job, working 22 hours a week, so obviously they have no P45 as they are still employed elsewhere.

Any advice welcome on what tax code I use. As a sole trader I do not use an accountant at the moment and do everything myself. Obviously this will change now and I will be seeing an accountant in the next month or so, but need to pay my two new people before this.

[Peasie]

I'm not allowed to post links so google "P46" - the instructions are on that form you need to fill in.

[David Richards]

We have just taken on our first employees (what a headache it is). We have two employees, and my question is, how do I know what tax code to put them on?This is one situation where the HMRC guidance is actually quite good.


If your new employee doesn't have a P45, then you have to give them a P46 (http://www.hmrc.gov.uk/forms/p46.pdf) to complete.

The tax code you use will depend on the boxes that they tick on the P46. This page on the HMRC website (http://www.hmrc.gov.uk/paye/employees/start-leave/new-employee.htm#x5) tells you which tax code applies in each situation.


HMRC booklet P49 (http://www.hmrc.gov.uk/forms/p49.pdf) Paying someone for the first time isn't bad either - and worth a read

[Tom McClelland]

You've already been given good advice, I'll just re-iterate, either use the tax code from a P45 if you have one, or follow the instructions on a P46.

It is surprising how often people come to us with all kinds of tales of things they happen to know about employee circumstances that they use to try to work out a tax code from first principals. Don't do any of that. Just follow the instructions on the P45 or P46. If HMRC think the employee has the wrong tax code they'll send you a P6, which is the instruction to alter tax code.

[billy buntin]

Need some help with what are probably silly questions, but here we go.

We have just taken on our first employees (what a headache it is). We have two employees, and my question is, how do I know what tax code to put them on?

Employee 1 - working full time (35 hours a week) for us. Was unemployed for a few weeks before starting with us, but has lost his P45, so have no idea what tax code to use for him.

Employee 2 - working 18 hours a week for us as a second job. They already have another job which is their man job, working 22 hours a week, so obviously they have no P45 as they are still employed elsewhere.

Any advice welcome on what tax code I use. As a sole trader I do not use an accountant at the moment and do everything myself. Obviously this will change now and I will be seeing an accountant in the next month or so, but need to pay my two new people before this.


tax year 10/11 if employee ticks A 647L cumulative tax code, box B 647L week1/ month 1 tax code. box C BR cumulative code.