Starting the tax year – Frequently Asked Questions
- What changes do I need to make to my employees’ tax codes for the new tax year?
- What will I need to start the new tax year?
- Will I need to use new taxable pay tables?
- What are the new rates for Statutory Payments?
- What tax code do I use for a new employee who gives me a P45?
- What changes do I need to make to my employee tax codes after the Budget?
- What in-year forms can I send online?
- When do I have to send in-year forms online?
Need more help?
If you have any other questions about starting the tax year which have not been covered you can get more help by calling the Employer Helpline on 0845 7 143 143, or you can send an email and we will reply within 2 working days
Q. What changes do I need to make to my employees’ tax codes for the new tax year?
A. You may receive a form P9(T) for one or more employees
which gives new tax codes to be used in the following tax year. But you
will not receive a new tax code for every employee. If you have received
a new tax code for an employee on form P9( T) then you must use the code
shown from 6 April.
For all other employees please follow the guidance on form P9X
(PDF 45K).
More information is available in Helpbook E11 Starting the tax year.
Q. What will I need to start the new tax year?
A. What you will need depends on your own particular circumstances. But you should now have received the Employer CD-ROM 2008 which contains everything you will need to start the new tax year. You can order any additional stationery from the Employer Orderline.
Q. Will I need to use new taxable pay tables?
A. You can begin using the P11 Calculator as soon as you receive the revised CD-ROM as it will automatically use the correct rates on the correct date. But if you prefer to use the PAYE Tax Calculator you should begin using this from 7 September 2008. You will need to use the revised Tables B-D (PDF 89K) and revised Calculator Tables (PDF 67K).
Q. What are the new rates for Statutory Payments?
A.
- From 6 April 2008 the new weekly rate for Statutory Sick Pay will be £75.40 More information is available in Helpbook E14 What to do if your employee is sick.
- For pay periods beginning on or after 1 April 2008 the new Standard Rate for Statutory Maternity, Paternity, or Adoption Pay will be the lower of 90 per cent of the Average Weekly Earnings, or £117.18. More information is available in Helpbook E15 Statutory Maternity Pay and Statutory Paternity Pay and Helpbook E16 Statutory Adoption Pay and Statutory Paternity Pay.
Q. What tax code do I use for a new employee who gives me a P45?
A. Use the detailed guidance in the Helpbook E12(3) PAYE and NICs Rates and Limits (PDF 137K) from 7 September.
Q. What changes do I need to make to my employee tax codes after the Budget?
A. We will send you an updated Employer CD-ROM after the budget which includes a P7X (PDF 38K). Follow the instructions on the P7X(2) (from 7 September 2008)(PDF 57K).
Q. What in-year forms can I send online?
A. You can now send a range of in-year forms online. More information is available from Doing it Online in Practice.
Q. When do I have to send in-year forms online?
A. Employers with 50 or more employees must send P45 (3), P46, P45(1) and pension notifications online from 6 April 2009. Employers with fewer than 50 employees do not need to start sending in-year details online until 6 April 2011.
