New employer help

Apr 10, 2005 13 Replies

As a new employer I am not sure which tax code to use for my employee's first wage packet of the new tax year.



He has been with me for about 3 months and after a short period of paying emergency tax the IR have given him a code of 483L



Do I continue with this code?



I've looked on the IR site but can't find the answer I've also tried calling them but the lines are busy



Thanks



Bruno


if the inland revenue give you a code, just use it and forget the issue

as an employer, it is not your job to decide or second-guess someone's tax code.

note that when you take someone on, their essential tax details are on the P45 from their previous job.

if they can't present a p45, get them to sign a p46

If the 483L code was for 04/05, you _must_ increase it by 15 for 05/06 i.e. use 498L wef from 6/4/05. Any subsequent code notification from IR will, of course, over-ride this.

HTH

"??????????" wrote

"??????????" wrote

That's not what the "Employer's Pack P9X(2005)" leaflet appears to suggest :-

"Employees without a new tax code from your Inland Revenue office: Carry forward the tax code from last year's form P11 to the 2005-06 form P11

*but*: **add 15** to any tax code ending in L, for example old tax code 474L becomes 489L"

Well I managed to get through to the IR at last. It seems that martin & Tim are spot on! Add 15 onto the existing code. So a real big thanks to you both. As for Mr ????????? I'm glad I don't do business with you! Dishing out bad advise!

Is the coding notice for 2004/5 or 2005/6.

Is it cumulative or month 1?

Are there any brought forward figures on it?

[SPLUTTER!]

Never mind Mr ?????????, Martin is every bit as capable of giving dodgy advice! When you cease as a sole trader because you have taken your employee into partnership with you he'll have you closed down and boarded up before you can say "PAYE ref".

How do you know you don't do business with Mr ????????? ? It probably isn't his real name.

Bt/fwd figures don't appear on a coding notice - only if the code is advised via the (current year) P45.

They are. An employee doesnt have to give a new employee a P45. They can send it to the tax office and the IR will advise the employer without telling the employer who the previous employer was.

I looked him up in the phone book but I couldnt find him. Maybe he's ex-directory?

well done tim - i forgot that the allowances changed for the new tax year

soz i'm a plonker

i'm a tax inspector really and i wanted to trip you up then bust you........

i'll try to redeem myself by mentioning that if you file your year-end returns online you may qualify for an incentive:-

formatting link

i will have to go ex-directory now my paye ignorance has been exposed to the world

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