Coding: codes: how they are used and calculated: multiple tax codes on the same day
For information about how to issue or amend a tax code refer to PAYE11120.
Where a tax code has been submitted and this results in the ‘issue’ of a P2 or P6 / P9, a message is sent immediately to the outputs part of the system that a form issue is required to be processed at the end of the day.
Only a further ‘issue’ of a P2 or P6 / P9 will stop the previous P2 or P6 / P9 from being issued. If on the same day a later tax code calculation is set to ‘not issue’ or the [Cancel] button is used, this will not stop the output of the previous ‘issue’ tax code.
Care must be taken when a tax code is ‘submitted’. If you have made a mistake or spot a problem ‘Cancel’ out of the Tax Code Details screen so that the tax code is not saved on the system. If an incorrect tax code has been saved on the system then you need to return the record to its original state at the beginning of the day and issue the tax code again to replace the incorrect tax code. At this stage if necessary make any updates to the tax code to get the status required.
Any later tax code calculations made on the same day will look back to the last tax code calculation made on the same day and then work out any further adjustments to the basis of operation, potential underpayment and issue of form P2 or P6 / P9.
For example the first tax code calculation on a particular day calculates the tax code is 652L made up of professional subscriptions £50 and personal allowance 6,475 on a cumulative basis and both P2 and P6 / P9 are set to issue. The tax code is amended to delete professional subscriptions £50 and replace them with job expenses £50, there is a change to the P2 but no change to the tax code to the employer. The P2 will be set to issue (the first P2 for the employment will not be issued) but the P6 / P9 will be set to not issue.