Adding a new employee to your payroll

If you operate a payroll and take on a new employee, it is important to ensure you have their correct personal details and you are using the correct tax code to calculate the tax due on their gross pay.

If your new employee has a P45 from their old job, they should provide this to you as it will contain the information that you will need to insert the employee onto your payroll system.

If no P45 is available, you should ask your new employee to complete a starter checklist to allow you to enter the relevant information onto your payroll.

This can be obtained via this link and passed to your new employee to fill out
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1106535/Starter_checklist.pdf

The procedure for allocating the new employee the correct tax code is dependent on which statement the employee ticks on page two of the checklist.

Your payroll software should automatically allocate the correct tax code, but if it does not the correct tax code to operate will be as follows.

Statement A ticked use tax code 1257L

Statement B ticked use tax code 1257L week 1/month 1

Statement C ticked use tax code BR

The employee can then be taxed appropriately.