HMRC Documents

Identify the type of Student Loan.

Code	Description
1	Type 1
2	Type 2
N	None

Student Loan Type 1 has an earnings threshold of £17,775 while Type 2 has £21,000.

Click this link to view Frequently Asked Questions (FAQs) on Student Loan repayment.

 

Select a document type to open up the required fields to be completed.

For a new starter you only need to update any of the following:

• Starter Checklist No P45
• P45 incl. New Pension Starter Details
• Starter Checklist - Seconded to work in the UK or
• Pension Starter No P45

If no Revenue document is received for a new starter, then update the Starter Checklist No P45 with Statement "C" and Tax code as 0T Week1/Month1.

 

Certain details from the new employee's P45 from previous employer are needed. Most of these details are self - explanatory but to aid you we have clarified a few areas:

Employee PAYE Reference

Enter these as shown on the P45 you have received from your new starter.

Student Loan deductions to continue

If P45 is indicated as such in Position 5, then check this box.

Click this link to view Frequently Asked Questions (FAQs) on Student Loan repayment.

Tax code at leaving date

Enter the Tax code including any prefix such as 'K' shown on the P45. Where this is prefixed with an 'S', then this must go in the Tax Regime.

Tax Regime

In order to identify individuals who will be subjected to the Scottish Rate Income Tax (SRIT), the HMRC will determine (via RTI inbound routines or via P45 for new starters) if a prefix of 'S' will be shown in an employee's tax code.This box will show the 'S' prefix where applicable on the FPS submission for an employee.

Week 1/Month 1

Where this is indicated as part of Position 6 on the P45, then please check this box. Week 1/Month 1 indicates that the cumulative pay & tax is not taken into consideration in the calculation of tax due each pay period.

Tax Period Left

Where the Week 1/ Month 1 is not indicated, please enter either the Tax Week number or Tax Month number shown in Position 7 on the P45. For the Total Pay to date & Total Tax to date, please enter as shown in Position 7 on the P45.

Week/Month

If paid, indicate 'W' for Weekly or 'M' for Monthly.

NB

Where the leaving date on the P45 shows as being in the previous Tax Year (6th April to 5th April 2014/15), please note the following rules:

Date of Leaving	Start Date	Code on P45	Starter Declaration	Tax Code to Use
Previous Tax Year	Start of current tax year to 24 May of that year	Not BR, 0T, D0 or D1	B	Code from P45 + for L codes, add budget uplift and ignore any month 1 indicator from P45
Previous Tax Year	25 May onwards	Not BR, 0T, D0 or D1	B	Current emergency code on a non-cumulative basis

The current Tax year goes from 6th of April 2015 to 5th of April 2016.

If the New starter is on a Pensioner Payroll, then use the tax code on P45 but on a Week1/ Month1 basis.

Additional information that needs to be provided to HMRC on the FPS in such cases are:

1. Occupational Pension Indicator - please check this box.

2. Annual Amount of Occupational Pension - please enter annual pension.

3. Occupational Pension paid because recently bereaved - this is where a spouse is taking the pension where the employee died. Please check this box if appropriate. In this case, all the details entered should relate to the spouse not the deceased.

4. Enter hours worked as 'E' Other - This will automatically be set once Occupational Pension indicator is entered.

 

Starter Statement

Select the corresponding statement from the Starter Check List A, B or C here, as indicated by the employee.

I have a Student Loan which is not fully repaid

If this is indicated on the Starter Check List, then please check this box.

Click this link to view Frequently Asked Questions (FAQs) on Student Loan repayment.

Current Tax Code

For Tax Year 2017-2018, once the appropriate employee statement has been entered, please use one of the following Tax codes according to the Statement entered:

• Statement A - Use 1150L
• Statement B - Use 1150L with a Week1/ Month 1 indicator
• Statement C - Use BR

If the employee has not indicated any of the above, then the employer must enter Employee Statement as "C" and operate tax at Code "0T" on a Week1/ Month

Note: All 'L' suffix Tax codes got an uplift of 50 points (e.g. 1100L will change to 1150L) in accordance with the March 2016 Budget. This is to be effective from 6 April 2017 and will reflect on all screens showing an employee's Tax Code. Prefix of 'M' will get a 55-point increase and those with an 'N' a 45-point increase.

NB : A P45 or a Starter Check List must be received and entered into the Payroll system before the employee receives their first pay.

If the New starter is on a Pensioner Payroll without a P45, then use the current emergency Tax Code (2017/18) which is 1150L with a Week1/ Month1 basis.

Additional information that needs to be provided to HMRC on the FPS in such cases are:

1. Occupational Pension Indicator - please check this box.

2. Annual Amount of Occupational Pension - please enter annual pension.

3. Occupational Pension paid because recently bereaved - this is where a spouse is taking the pension where the employee died. Please check this box if appropriate. In this case, all the details entered should relate to the spouse not the deceased.

4. Enter hours worked as 'E' Other - This will automatically be set once Occupational Pension indicator is entered.

 

P6 notifies the employer of a change in Tax Code for their employee. Sometimes this may also include details of previous pay & tax if they have recently started with you.

Where more than one P6 is received for an employee before the next payroll is run, please use the latest dated one.

Where the P6 contains previous pay & tax, please enter these. However, if you already hold previous pay & tax details for this employee from his/her supplied P45, then:

• If they are the same, ignore; or
• If they are different, overwrite the previous pay & tax figures with those as shown on the P6. This could mean that there may have been an error on the figures supplied on the P45.

Tax code

Enter the Tax code including any prefix such as 'K' shown on the P45. Where this is prefixed with an 'S', then this must go in the Tax Regime.

Tax Regime

In order to identify individuals who will be subjected to the Scottish Rate Income Tax (SRIT), the HMRC will determine (via RTI inbound routines or via P45 for new starters) if a prefix of 'S' will be shown in an employee's tax code.This box will show the 'S' prefix where applicable on the FPS submission for an employee.

Week1/ Month1

If shown, please check this box. This means that the tax has to be calculated on that basis without taking into account any previous pay & tax figures that maybe held.

 

Do not operate P9(T) Coding changes until you are in a position to commence the New Tax year.

The code changes notified are the result of a change in circumstances for those employees and will be disseminated to the employees individually by HMRC. They will not cater for the normal tax code uplift that occurs each year as a result of a review of the basic tax allowance attributable to 'L' suffix tax codes. These will be notified via a P9(X) notification which covers all the basic tax changes for the coming year and tells you what to do.

Note: All 'L' suffix Tax codes got an uplift of 50 points (e.g. 1100L will change to 1150L) in accordance with the March 2016 Budget. This is to be effective from 6 April 2017 and will reflect on all screens showing an employee's Tax Code. Prefix of 'M' will get a 55-point increase and those with an 'N' a 45-point increase.

Tax Code to Operate

Enter the Tax code including any prefix such as 'K' shown on the P45. Where this is prefixed with an 'S', then this must go in the Tax Regime.

Tax Regime

In order to identify individuals who will be subjected to the Scottish Rate Income Tax (SRIT), the HMRC will determine (via RTI inbound routines or via P45 for new starters) if a prefix of 'S' will be shown in an employee's tax code.This box will show the 'S' prefix where applicable on the FPS submission for an employee.

Week1/ Month1

If this is indicated on the coding notice, check this box. This signifies that the tax is not calculated on a cumulative basis.

 

Starter Statement

Select the corresponding statement from the Starter Check List A, B or C here, as indicated by the employee.

I have a Student Loan which is not fully repaid

If this is indicated on the Starter Check List, then please check this box.

Click this link to view Frequently Asked Questions (FAQs) on Student Loan repayment.

Current Tax Code

For Tax Year 2016-2017, once the appropriate employee statement has been entered, please use one of the following Tax codes according to the Statement entered:

• Statement A - Use 1150L
• Statement B - Use 1150L with a Week1/ Month 1 indicator
• Statement C - Use BR

If the employee has not indicated any of the above, then the employer must enter Employee Statement as "C" and operate tax at Code "0T" on a Week1/ Month.

NB : A P45 or a Starter Check List must be received and entered into the Payroll system before the employee receives their first pay.

If the New starter is on a Pensioner Payroll without a P45, then use the current emergency Tax code (2017/18) which is 1150L with a Week1/ Month1 basis.

Additional information that needs to be provided to HMRC on the FPS in such cases are:

1. Occupational Pension Indicator - please check this box.

2. Annual Amount of Occupational Pension - please enter annual pension.

3. Occupational Pension paid because recently bereaved - this is where a spouse is taking the pension where the employee died. Please check this box if appropriate. In this case, all the details entered should relate to the spouse not the deceased.

4. Enter hours worked as 'E' Other - This will automatically be set once Occupational Pension indicator is entered.