Adding new employees to the payroll
06 Apr, 2017
Employers that take on a new employee need to work out which tax code and starter declaration to use in their payroll software. Incorrect tax codes can lead to the new employee paying more tax than is due.
The necessary information can be collected by asking the new employee to complete HMRC's new starter checklist and / or from the employee’s P45. This information must be held in the employer's payroll records for the current year and the 3 following tax
years. Once the information has been collated, HMRC’s online tool can be used to work out the employee’s tax code.