Tax Codes
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Hey guys,
Just a quick question - I have my first payroll exam on monday (unit 71 from NVQ2) and have no idea how you know which tax code to use! E.g. whether it is emergency tax code or Basic Rate etc or whether you keep the tax code the person has on their p45 or p46 etc. I'm just really confused about it. Does anyone know much about which tax codes to use?
Any help is much appreciated!!!
Thank you :-)
Just a quick question - I have my first payroll exam on monday (unit 71 from NVQ2) and have no idea how you know which tax code to use! E.g. whether it is emergency tax code or Basic Rate etc or whether you keep the tax code the person has on their p45 or p46 etc. I'm just really confused about it. Does anyone know much about which tax codes to use?
Any help is much appreciated!!!
Thank you :-)
0
Comments
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Re:Tax Codes
If an employee gives you a current P45, use that code - unless it's complicated by the end of the tax year.
If they don't give you a P45, ask them to complete a P46 and apply the emergency code on a week/month 1 basis.
If this is their first job since leaving full-time education, they should complete a P46 and you would apply an emergency code, but on a cumulative basis.
Good luck!
PS There are other scenarios - but these cover the basics!
Helen0