Using the starter PAYE checklist
11/04/2024

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 a new employee paying more tax than is due.

Employers will require certain information from their new employee in order to ensure that the correct tax code and starter declaration information is entered on the payroll software. In most cases, all the necessary information can be found on the employees P45. It is important to remind new employees to bring this with them on their first day of work.

If the employee does not have a P45 the necessary information can be collected by asking the new employee to complete HMRC's online starter PAYE checklist. A paper version can also be completed if the new employee is unable to use the online version. This information must be held in the employers’ 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.

The starter checklist can be used by a new employee if:

  • they have a student or postgraduate loan;
  • their personal details are different to those shown on their P45;
  • they do not have a P45; and
  • they have been sent to work temporarily in the UK by their overseas employer.

Once the checklist has been completed, the new employee should email, post or give the completed list to their employer. There is no requirement to send the checklist to HMRC.


Contact Us

DC Business centre
10 Charles Wood Road
Rashes Green Industrial Estate
Dereham
Norfolk
NR19 1SX

Call Us: 01362 851718
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Membership

  

Newsfeed Search


Newsletter Sign up and Login

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!
Newsletter Sign up  |  Login