HMRC issue 2019/20 P9X tax code guidance

HMRC have recently released their annual guidance document, P9X, which explains which tax codes employers must change, how to change them and which codes to carry forward ready for the new tax year on 6 April 2019.

There are a number of payroll tasks that employers need to do to get ready for the new tax year. One task will be identifying the correct tax code to use in the new tax year for each employee who will be working for you on 6 April.

As most tax codes are based on the personal allowance, they can, with a small adjustment to take account of any raises in the personal allowance, be carried forward into the new tax year. P9X explains how to uprate these general tax codes for employees ready for the 2019/20 tax year. This should be done after the last pay run of this tax year – which ends on 5 April 2019 – to ensure a smooth transition into the new tax year.

Specific step-by-step instructions for HMRC’s Basic PAYE Tools users are set out in the guidance document. It also provides details of the tax rate bands and emergency tax codes for the 2019/20 tax year. The document itself is available in full on GOV.UK.

Sometimes an employee has an individual tax code that cannot be dealt with by general uprating. HMRC will tell you what the new tax code is on form P9T Notice of Coding.

You will either receive a paper form P9T or if you are registered to use HMRC’s PAYE Online, you will receive an email notification to log into your online account and view your tax coding notices. When logging into the online account to view your tax coding notices, please ensure the correct tax year is selected, 2019-2020.

Please note you may receive tax coding notices as late as 30 March 2019.

If HMRC do not send you any P9T tax codes for the new tax year and you are expecting them, or you have any other payroll problems you should call the Employer Helpline:

  • New and inexperienced employers: 0300 200 3211
  • Experienced employers: 0300 200 3200
  • Employers with hearing difficulties: textphone 0300 200 3212

For more on end of year payroll processes, see our website guidance.