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Tax Code and Student Loan - UK
Setting up a new employee requires setting their tax code and student loan if the employee has one. The tax code will be determined by their starter record or entered if transferring from another system. An employee can only have one starter record. Once one is created, it can be changed until it's sent to the HMRC on an FPS.
Select the type of Starter record being entered for the employee.
P45
When an employee starts, they provide their employer with a P45 Part 3. This will contain details from their previous employer, which can then be entered on this form.
When you've entered the details on the form, Greentree will determin which tax code is in use and the details from the P45 will be sent to the HMRC.
Once the P45 form is completed and saved, a line will be entered on the Tax Configuration clever table showing the date and time it was created.
If a new system is being setup for an existing company, the tax code and other details can be brought in using the Manual Tax Code and Manual Student Loan buttons, or by using the FREE import function.
Starter
If the new employee doesn't have a P45, then a Starter record must be filled in. This may occur if this is their first job, have come from overseas, or may have lost their P45. The Starter record takes the position of a P45 and contains basic information so a tax code can be generated. The selection on the Starter record will determine what the tax code in use should be. Greentree determines the tax code that is used for this employee.
Starter Expat
A Starter Expat contains similar information to the Starter but is used for who have come to the UK for work.
Manual Tax Code
If you must set up a tax code you can enter it on this form. Enter the tax code and select if it is a Week 1/Month 1 code.
If it's a cumulative code you can tick to Enter previous pay and tax, and provide a reason. Manual tax codes should only be entered when setting up a new system.
The previous pay and tax to date are important fields as they determine how the tax is calculated.
Manual Student Loan
This form provides the option to Start/Stop the Student Loan and set the plan type. If the Student Loan option is selected, you can come in using this form and set it to false and provide a reason or vice versa. Again, like the Manual Tax code, this should only be used when setting up a new system.