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Adding new employees to payroll

Employers that take on a new employee need to work out which tax code and starter declaration to use in their payroll software. Incorrect tax codes can lead to the new employee paying more tax than is due.

The necessary information can be collected from the employee’s P45 or by asking the new employee to complete HMRC's new starter checklist (if they do not have a recent P45). A number of changes have been made to the new starter checklist from April 2020 to make it easier to complete.

The information collected must be held in the employers’ payroll records for the current year and the 3 following tax years. The new employee's tax code must be sent to HMRC using a Full Payment Submission (FPS) on or before the new employee’s first payday.

The required information usually comprises the following, the employee’s:

  • date of birth
  • gender
  • full address
  • start date

From the employee’s P45:

  • full name
  • leaving date from their last job
  • total pay and tax paid to date for the current tax year
  • student loan deduction status
  • National Insurance number
  • existing tax code.
Source: HM Revenue & Customs Wed, 29 Apr 2020 05:00:00 +0100

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Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.

Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest:

HMRC
FT
BBC
VEALE WASBROUGH VIZARDS
CESP
PRACTICE INDEX
SIMCOMM ACADEMY

More Local:
FOOTPLATE EXPERIENCE
ANGLEBURY PRESS
OFFCAMBER.CO.UK