Tax Config Tab

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This tab 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 changes 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 passports.

Tax Code

The tax code and Week 1/Month 1 flag is filled from a starter record, or from a P6 or P9 forms from the HMRC. If you must change this, click the Manual Tax Code button. You might need to do this when setting up a new site.

Week 1/Month 1

The tax code and Week 1/Month 1 flag is filled from a starter record, or from a P6 or P9 forms from the HMRC. If you must change this, click the Manual Tax Code button. You might need to do this when setting up a new site.

Student Loan

The Student loan option and Plan 1 and 2 settings are set by the starter record and the 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 — for example:

• Casual or seasonal employees whose employment contract continues.
• Employees on maternity leave, long term sick leave, or leave of absence and are not 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 are calculated using the director calculations.

Calculate NI using Employee

Select this option to calculate National Insurance using the director calculations, but spreading the payments evenly over the year — for example, 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 status of the employee's Tax Code and Student Loan. The table shows where the current tax code is sourced from.

• Tax Code and Student Loan

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