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WelshCountryMum
March 9, 2023
Question

Received P6 Tax Code Notice from HMRC for Employee that's left

  • March 9, 2023
  • 1 reply
  • 0 views

Hi,

I've received a P6 Tax Code notice 2022/23 from HMRC dated 25/01/23, for an employee that left our employment on 23/12/22. 

Do I need to update his tax code (the tax code on the P6 is different to that in QBO Advanced Payroll) and if so, what steps do I need to take to do this? 

I'm used to updating P9 Tax Code notices for current Employee's, but presumed once an Employee had been terminated that was it. 

HMRC have sent the notice twice, making me think they need me to update eventhough I've processed the Employee as a leaver through QBO.

Any advice gratefully received.

1 reply

A
Ashleigh1
March 9, 2023

Hello WelshCountryMum, Thanks for posting on the Community page, If the tax code was changed during a period they were employed in, you would need to change it, if it was on the system and still active you need to change it and make sure that you roll back do the changed then roll it forward again and make sure to terminate the employee as a leaver. 

W
WelshCountryMumAuthor
March 9, 2023

Thanks for your reply.

Their tax code (copied from their previous employer P45) wasn't changed whilst in our Employment of 13 months, and the P6 effective date (25/01/23) is after they were terminated (23/12/22) as an Employee leaver on QBO. 

I tried to speak to HMRC but they were unable to comment regarding an Employee's tax code even when on a P6!?

I'm unsure why HMRC have issued the P6 to us and not the new Employer...would that be the usual senario?

As they've sent it twice I just wanted to make sure I'm ok to ignore, and not update it in QBO.

Thanks again for any insight.

J
JamaicaA
March 9, 2023

I appreciate your patience while dealing with this confusion about the tax code, @Welsh. I'll share some clarification about the forms provided by HMRS.

 

A P6 form may also be used to refer to a tax code notice. If you get an employee's new tax code after the deadline for the current tax year, you should use it the following year. Previous the meaning of the letters. Next for the new tax year, updating.

 

Employers receive a P6 from HMRC that contains information on an employee's tax code, prior earnings, and taxes. The employee's tax code must be verified or modified before you enter any prior pay and taxes, if applicable.

 

Employers receive a P9 from HMRC that contains information about an employee's tax code.

 

You'll want to reach out to HMRC again for further explanation about this. They'll be able to address any follow-up questions you may have.

 

If you have any other concerns apart from tax codes in QuickBooks Online, feel free to comment below. I'm always ready to provide answers.

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