SAGE Payroll

How to Change an Employee’s tax code manually

If HMRC sends you a P9 or P6 notification to change an employee’s tax code, you need to apply it in your software.

When the tax code notice has an X after the code, this means you need to set the week1/month1 flag.

NOTE: if you are not certain what tax code to use for an employee, contact HMRC for advice.

There are different steps depending on when the tax code is effective from.

Tax code effective immediately

1. Select Payroll in the bottom left.
2. Double-click the required employee on your employee list.
3. Go to the Employment
4. Enter the new tax code in the Tax Code
5. If applicable, select the Week1/Month 1 Basis
6. Select Save then Close.

Your software uses the tax code you entered from the next pay period you process.

Tax code effective from a future date

1. Select Payroll in the bottom left.
2. Double-click the required employee on your employee list.
3. Go to the Employment
4. Select the + button beside the Tax Code
5. Enter the details

• Tax Code – enter the new code in this field.
• Week1/Month 1 Basis – Select this checkbox if the new tax code is on a week1/month1 basis.
• Effective From – enter the date the new tax code is effective from.

6. Select OK then Close.

Your software automatically applies the new tax code in the correct pay period.

This occurs in the first period where your Process date is on or after the tax code Effective from date that you entered above.

If you would like help with entering a tax code or need any other help or advice with your payroll, please contact us

We can also provide a remote access service where we can link into your computer to help you resolve your Sage Accounts or Payroll problems.

Sage 50 Accounts

Activating Sage Copilot

Note: Users receive Copilot access individually, and Copilot accesses only the same data as the user can access.

1. Download and install the latest version of Sage 50 accounts if you have not already.
2. Log in as Manager.
3. Select the Sage Copilot button, anywhere you see it in your software. In v32.0 and below, this is called Copilot insights.

TIP: In V32.1 and above, click Activate Sage Copilot in the software home page, or on the Help banner at the top of the modules.

4. Select connect now on the Connect your company to get started with the Sage Copilot window.
5. Follow the prompts to connect your company to your Sage account, if required.
6. If you have multiple Sage users, you are prompted to enter their name and email address. If Manager is the only user, just click Activate Sage Copilot on the window in step 10.

TIP: Select remove from list to hide usernames of people who have left the business, or that exist only to use third-party software.

7. After entering all user details, select
8. On the Grant Sage Copilot access window, select which user will have access to Copilot in the dropdown:

NOTE: This grants access to the first Copilot user. If you have multiple Copilot users on your licence, you can edit the user to add access later.

9. Press
10. Click Activate Sage Copilot on the Activate Sage Copilot Step 3 of 3 window.

NOTE:  After enabling Copilot, all users will need to sign in to Sage 50 Accounts using their Sage account, even users who don’t use Copilot.

If you would like help setting up Sage Copilot or any other help with your Sage 50 Accounts, please contact us