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HMRC PAYE update (Code changes and notices, PAYE payments and moving online)

HMRC have provided a further informal update on PAYE related matters for sharing. The update covers tax code change, PAYE payment, coding notices 2011-12 and receiving P9 and P6 forms electronically.

Tax code change – share based payments made after an employee has left

From 6 April 2012 the 0T (zero T) tax code should be used on a non-cumulative basis against share-based payments (those in the form of securities, interests in securities and securities options) made to an employee after cessation of employment which have not been included in the Form P45.

This aligns all earnings received after cessation of employment under the same tax code (0T). A Technical Note is available on the HMRC website and we would welcome comments on the draft amended PAYE Regulations until 16 February 2012.

PAYE Payment - January

Your PAYE Payment is due Sunday 22 January 2012 - to avoid paying late and late payment penalties make sure HMRC have cleared funds in time.

Find out more - PAYE Payment

You can now pay using our faster payments service. Find out more - Faster Payments

Coding notices 2011-12

We are issuing annual coding notices from January - March 2012.

We expect the first PAYE tax codes have started to drop onto customer’s doormats from this week.

We are planning to issue about 17m-18m notices of coding which is in line with 2011-12. Co-enveloping notices of coding, two P2s in one envelope, will continue where customers are due to get more than one P2. This means that about 96% of customers will receive one envelope.

[The CIOT have queried with HMRC whether coding notices for those in SA will, as previously requested, be delayed until after Tax Returns have been processed and we will post an update once we have a reply.]

Find out more Coding notices

Move to online – receiving P9 and P6 forms electronically

Are you still receiving your employee PAYE coding forms on paper? If so read on.

Many employers have told us how much more convenient and efficient it is for them to receive codings electronically than on paper, and that they wished they’d done it sooner!

Once you register for HMRC’s ‘PAYE Online for employers’ service, HMRC will automatically stop sending you forms P9 and P6 ‘Notice of the tax code to use for an employee’ by post and will automatically send them to you online.

To access the forms that HMRC sends to you online, you can:

  • Use a commercial software product
  • Log on to the ‘PAYE online for employers’ service on the HMRC website and choose either; ‘tax code notices’, ‘student loan notices’ or ‘employer notices’. We strongly recommend that you provide the service with an email address, so it will send you an email alert each time HMRC sends you one of these forms.
  • Use the PAYE Desktop Viewer (PDV). This is an application that you can download and install from the HMRC website. It is particularly suitable for employers expecting a large number of forms.

For more information – go to P9 and P6 - electronic


Technical Team

24 January 2012

 

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