DHC Accounting

Unit 7, Lillyhall Business Centre
Jubilee Road, Workington
Cumbria, CA14 4HA
Tel: 01900 64464 - Fax: 01900 64466

Search News


Adding new employees to the payroll

Source: HM Revenue & Customs | | 05/04/2017

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 by asking the new employee to complete HMRC's new starter checklist and / or from the employee’s P45. This information must be held in the employer's payroll records for the current year and the 3 following tax years. Once the information has been collated, HMRC’s online tool can be used to work out the employee’s tax code.

There is also an online tool that can be used to work out any new employee's tax code correctly. This information 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.


 

Latest News

Bereavement leave for parents who lose a child
18/10/2017 - More...
The Parental Bereavement (Leave and Pay) Bill has been published by the government. Although the Bill is a Private

Managing staff experiencing mental ill health
17/10/2017 - More...
Acas has launched new guidance to help employers manage staff who are experiencing mental health issues. The new

Is it a car or a van?
17/10/2017 - More...
The First-Tier Tribunal recently heard three appeals that examined whether vehicles supplied to employees were vans or

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

 

 

Copyright © 2017 - DHC Accounting

Cookie Policy