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Tax Code and Student Loan
Setting up a new employee requires setting their tax code and student loan information (if the employee has a student loan). The tax code is determined by their starter record or entered if you're transferring the employee from another system. An employee can only have one starter record. Once one is created, you can change it 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 contains details from their previous employer, which you can enter on this form.
When you've entered the details on the form, Greentree Desktop determines which tax code is in use and the details from the P45 are sent to the HMRC.
Once the P45 form is completed and saved, a line is entered in the Tax Configuration table showing the date and time it was created.
If a new system is being setup for an existing company, you can import the tax code and other details by clicking 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 you must enter the Starter record. This may occur if this is the employee's first job, they have come from overseas, or have lost their P45.
The Starter record takes the position of a P45 and contains basic information for generating a tax code. The selection on the Starter record determines what the tax code in use should be. Greentree Desktop determines the tax code to use for this employee.
Starter Expat
A Starter Expat contains similar information to the Starter, but is used for employees who have come to the UK for work.
Manual Tax Code
Enter the tax code and specify if it is a Week 1/Month 1 code.
If it's a cumulative code, select Enter previous pay and tax and provide a reason. You should only enter tax codes 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
You can use this option to start or stop the employee's student loan and set the plan type. If the Student Loan option is selected, deselect this option and provide a reason.