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Posted on

March 28, 2017

Setting up automated tax code notices with Paycircle

Setting up automatic updates means that you won't ever have to update your teams' tax codes manually

  1. It’s not uncommon to need to pay an individual a sum after they’ve left your company and have already been issued their P45.

    It can cause problems at HMRC with regards to how much the person has been paid and the amount of tax they have paid paid if you don’t do things correctly. Here’s how to make a payment to someone after they have left using Paycircle:

    • Go to the Company area in the left hand navigation
    • Go to the Leavers section
    • Find the team member who has left
    • Click on the menu icon in the top left of the tile

    • Select the option Payment After Leaving
    • Pick the type of payment you want to give, (unused) holiday pay, back pay or a bonus for example and add the total (Gross amount) of the payment and hit Save.

    That’s it, the payment has been added to your next payroll.

    Here’s what happens next

    • The team member who is having the payment after leaving is added back to the current payroll ready for processing
    • The team member’s payment get’s taxed on a Week 1 or Month 1 basis. W1 and M1 are emergency tax codes and therefore the tax for this payment is based on this payment only, not the whole year
    • When payroll is processed, the team member will receive an email saying they have a payment and the payslip for this payment will be available in their portal.
    • You do not need to issue another P45

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