Updating your employees’ tax codes
From the 2022/23 tax year, the personal tax allowance remains at £12,570. This means that the emergency tax code remains at 1257L and you don’t need to update employees’ tax codes
However, if you receive a P9 or P6 from HMRC, you will need to update an individual employees tax code. You should clear any week 1/month 1 flags for the employees too.
Tip: There are no separate increases for Scottish and Welsh tax codes.
Update an employee’s tax code
There are different steps depending on how HMRC contacted you, you will either get a letter through the post, or an IR Secure Mailbox notification.
Received a letter
- Select the required employee and click the Employment
- In the tax code box, enter the tax code HMRC have stated.
- Click Save.
IR Secure Mailbox Notification
- Click E-submission, then click IR Secure Mailbox.
- Select P9
- Click Apply.
The employee tax code will now be updated and you can clear the week 1/month 1 flag.
Clear the week 1/month 1 flag
- Select the required employees.
- Click Tasks then click Global Changes.
- Click Tax Codes then click Clear W1/M1 flag.
- Click Yes then click OK.
If you would like help updating your employees tax codes, clearing week 1/month 1 flag(s) or need any other help or advice with your payroll please contact us
We can also provide a remote access service where we can directly link into your computer to help you resolve your Sage Accounts or Payroll problems.