One of the most common questions that we are asked is what tax code should be used for starters in the new tax year when presented with a late P45. Or, what tax code to use if there is no P45 at all.
This information can be pieced together by looking at various places on Gov.UK. For example:
However, these places tend to focus on the tax code only and do not consider with equal importance the starter declaration to be made in the payroll or the need to establish whether there is a Student Loan to repay.
Therefore, Cintra has accumulated all of the required information and placed it into one document as an ‘aide memoire’ for clients. It looks as the issue of whether the P45 can be used in the first place and, if so, what action should be taken by the employer in terms of the tax code and the starter declaration on the Full Payment Submission (FPS). It also emphasises the importance of establishing whether there is a Student Loan that needs to be repaid, a question that needs to be asked of all new employees.
You can download the document here: Which Tax Code to Use in 2019.20
We hope you find it useful.