Employee Tax Configuration - UK

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This form contains the information required for calculating PAYE tax, student loan contributions, and National Insurance contributions. Use this form to record the employee's director status for National Insurance calculations and records movements for the employee to and from the HMRC.

When setting up a new system, read the information about the P11 Journal before entering Manual Tax Codes.

The National Insurance categories are updated using the age of the employee. When:

• An employee reaches State Pension age, their category change to category C when the next pay is created.
• An employee turns 21, they are assigned to a new standard National Insurance category. They are no longer eligible to have no employer contributions deducted.
• An apprentice turns 25, they are assigned to a new standard National Insurance category as they are no longer eligible to have no employer contributions deducted.

National Insurance

Enter the employee's National Insurance number.

NI Category

Select the employee's National Insurance category.

Hours worked

Select the number or hours that the employee normally works in a week. If an employee works an different number of hours one week, you don't need to change this value. If the employee regularly works different hours per week, use the Other option in the list.

Passport number

Enter the employee's passport number, including UK or non UK passport.

Tax Code

The tax code and Week 1/Month 1 flag is filled from a starter record, or from a P6 or P9 form from the HMRC. If you must change this, click the Manual Tax Code button. This may be required when setting up a new site.

Week 1/Month 1

The tax code and Week 1/Month 1 flag will be filled from a starter record, or from a P6 or P9 form from the HMRC. If you must change this, click the Manual Tax Code button. This may be required when setting up a new site.

Student Loan

The Student loan checkbox and Plan 1 and 2 setting is set by the Starter record and SL1 and SL2 forms from the HMRC.

Payment to a non-individual

Select this option if the payment is going to a non-individual.

Irregular Payments

Select this option if this employee is paid on an irregular basis such as:

• Casual or seasonal employees whose employment contract continues.
• Employees on maternity leave, long term sick leave, or leave of absence and will not be paid for a period of three months or more - but you still regard them as employees.

Include in next NINO verification request

Select this option to include this employee in the next NINO verification request (NVR) sent to the HMRC.

Director

Select this option if the employee is a director and requires National Insurance calculated using the director calculations.

Start Date

Enter the start date of the employee's directorship. If this field is left blank, all pays will be calculated using the director calculations.

Calculate NI as per Employee

Select this option to calculate National Insurance using the director calculations, but spreading the payments evenly over the year (like an employee's payments). The last pay for the employee for the financial year uses the annual calculation. This may be the last pay for the period, or a termination pay.

Tax table

This table displays records that relate to forms sent and received by the HMRC and well as manual changes to the Tax Code and Student loan status. The table shows where the current tax code is sourced from.

• Tax Code and Student Loan

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