PAYE: the basics

Employee tax codes

Each taxpayer has a personal tax code issued to them by HM Revenue & Customs. You will find this code on a new employee's form P45. You use the code together with HM Revenue & Customs taxable pay tables to work out how much tax to deduct from your employee. You can look up taxable pay tables on the HM Revenue & Customs website.

New employee without a P45
If your new employee doesn't have a form P45 and therefore there isn't a tax code for you to use, they will probably need to complete a form P46 - which can be done using PAYE Online for Employers. Read about and enrol for PAYE Online for Employers.

Find details on completing form P46 at the HM Revenue & Customs website.

Subjects covered in this guide

• Introduction
• Employer's responsibility for PAYE
• Getting started with PAYE
• When to apply PAYE
• Employee tax codes
• PAYE forms - and when to use them
• Where to get further information on PAYE

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