3. Update employee payroll records

For each employee working for you on 6 April, you’ll need to:

  • prepare a payroll record
  • identify the correct tax code to use in the new tax year
  • enter their tax code in your payroll software

You should include in your payroll:

  • all employees you pay in the tax year, no matter how much you pay them
  • any employee who has worked for you in the current tax year (since 6 April) even if they’ve already left

Using the right tax code

HM Revenue and Customs (HMRC) will send you a:

For April 2015, if your employee’s tax code ends in ‘L’, add 60, eg 1000L becomes 1060L.

If you get a lot of tax code notices, it may be faster to use HMRC’s PAYE Desktop Viewer.

New employees

Use the information new employees give you (usually their P45) to work out their tax code.