New starters

Every new employee needs either to give you a P45 from preceding employment or complete a P46. You can get the employee to complete one of these on screen:or telephone us 020 8810 4500

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There is a tax free band of £115 per week provided it is the employees only job. They make a declaraion about this on the P46.

Please double check that the correct tax code is being applied. Particularly in respect of the new starters. This appears as “Tax code:” in the top right hand corner of each pay slip. The normal code 2008/09 is 603L. If, however, the employee has another job (or pension) where they are being given their personal allowance (tax free pay/tax code) the code with you should be BR which results in all pay being taxed at 20%.

Employees who over-claim their personal allowance will receive a tax bill after the end of the tax year and are likely to blame their employer for the mistake. There could be circumstances in which the employer has to pay the under-deductions.

If employees should feel that they are paying too much tax they can contact the tax office and obtain a PAYE code which will enable adjustments to be made in the payroll. This will not affect the overall cost to the business provided that the salary is based on a gross amount.

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