Starting the tax year from 6 April 2009

This helpbook tells you what you need to do to prepare for the start of the new tax year 2009–10.

It explains:

  • what records you need to keep from the start of the new tax year 2009–10
  • when to use a form P11 Deductions Working Sheet (PDF 71K) to record details of Pay As You Earn (PAYE) and National Insurance contributions (NICs), and how to fill in the employer and employee details on a form P11
  • how to change your employee’s tax code from the start of the tax year 2009–10
  • how long to keep the records

This document is also available in Portable Document Format (PDF). To view a PDF you must have Adobe Acrobat Reader installed on your machine.

Contents

Records you need to keep

For each employee you must keep a record of:

Top 

When must I prepare and maintain a form P11 Deductions Working Sheet?

You must prepare and maintain a form P11 Deductions Working Sheet (PDF 71K) (or equivalent record) when:

  • you pay your employee
    • £95 or more in any week (National Insurance contributions weekly Lower Earnings Limit), or
    • £412 or more in any month (National Insurance contributions monthly Lower Earnings Limit)
      If your pay period is other than weekly or monthly please see the Employer Helpbook CWG2 Employer Further Guide to PAYE and NICs
  • HMRC have issued you with a tax code for your employee, or
  • you are required to operate a tax code taken from your employee’s P45, or
  • you have paid your employee and you are required to operate tax code BR in accordance with the P46 procedures detailed at Filling in form P46 of the Employer Helpbook E13 Day-to-day payroll

If you are not required to maintain a form P11 Deductions Working Sheet (PDF 71K), you must keep a record of the employee’s name, address and the amount of wages paid each pay period, for example weekly/monthly/ four-weekly.

Top 

Example of the top of form P11 (PDF 113K)

Check you are using the right form P11.

For help on completing boxes A to L of the form P11 at the start of the tax year 2009–10, see below.

Top 

Form P11

If you do not use payroll software HM Revenue & Customs provides:

  • a P11 Calculator on your CD-ROM. The P11 Calculator will work out and record your employees’ PAYE tax, National Insurance contributions (NICs) and any Student Loan deductions every pay day. It also has a linked P32 ‘record of deductions’ that works out how much you need to pay us
  • a paper form P11 Deductions Working Sheet (PDF 71K). You can order copies from the Employer Orderline
    • from our website
    • by phone on 08457 646 646
    • fax on 08702 406 406.

The P11 is a double-sided form and on each side:

  • the left hand section has columns 1a to 1f for recording NICs, 1g to 1j for recording Statutory Payments (SSP, SMP, SPP and SAP), and 1k for recording Student Loan deductions
  • the right hand section is headed 'PAYE Income Tax' and has columns 2 to 8 for recording pay and tax.

Alternatively you can use equivalent documents which must contain all the details you would record on the form P11.

Top 

Preparing form P11

At the start of the new tax year prepare a form P11 and fill in boxes A to M using the details from the form P11 or update your payroll software that you have been using for 2008–09. The following guidance will help you.

Employer's details

Box

Details

Box A

Employers name

Box B

HM Revenue & Customs office name and Employer PAYE reference – you’ll find this on the P11 or your payroll software that you have been using for 2008–09. Alternatively, you can find this number on the front of your P30BC Payslip Booklet or P30B letter.
Employee's details in CAPITALS

Box

Details

Box C

Employee's surname

Box D

Employee’s forename(s) – up to two forenames only. If you don’t know the employee’s full forename(s) put their initial – or initials – in this box but make efforts to find out their full forename(s) before the end of the tax year.

Box E

Employee’s National Insurance number – this must be two letters, six numbers followed by one letter (for example, AB123456C). This is an example only and should not be used where an employee does not provide their NI number. For more information about tracing National Insurance numbers, see taking on a new employee of the Employer Helpbook E13 Day-to-day payroll.

Box F

Employee’s date of birth – this must be entered in figures using the format
DD MM YYYY, for example, 04 02 1959. You must show date of birth and gender on all P45s and P46s from April 2009.

Box G

Works/payroll no. etc – if you use a works or payroll number system to identify your employees enter the works/payroll number in this box.

Box H

Gender - enter M (male) or F (female).
Starting and leaving dates

Box

Details

Box I

You do not need to fill in this box unless the employee starts work with you on or after 6 April 2009.

Box J

This box should only be filled in if your employee stops working for you in the 2009–10 tax year.
Student Loan Deductions

Box

Details

Box K

Enter a ‘tick’ in this box, if you were required to make Student Loan deductions for the employee at the end of the previous tax year. If you received a Stop Notification, you should still enter a ‘tick’ if it did not come into effect until after 5 April 2009.
New tax codes from 6 April 2009

Box

Details

Boxes L & M

We will not send you a new tax code for every employee, but when we do send you a new tax code you will receive either:

  • an electronic notification of coding (depending on your arrangements with HM Revenue & Customs (HMRC)) or

  • form P9(T), see the example below

Top 

We recommend that you carry out the new tax year code amendment process as follows:

Example of a form P9(T) (PDF 131K)

Employees without a new tax code

Carry forward the authorised tax code from last year’s form P11 to the 2009–10 form P11, but if you have received a 2008–09 tax code on a form P6 too late to use in 2008–09 carry forward this code instead:

  • add 44 to any tax code ending in L. For example, 603L becomes 647L.
  • do not copy or carry over any ‘week 1’ or ‘month 1’ markings – the code must be operated on a cumulative basis.

We have issued revised tax codes to all employees with a tax code ending in V. Please contact your HMRC office immediately if you have not received a revised code for a tax code ending in V.

Employees with a new tax code

  • keep and use the form P9(T) or other tax code notification, with the most recent date for each employee (if you have more than one, use the most recent one)
  • do not add 44 to the tax code where you have a P9(T) or other tax code notification for 2009–10
  • scrap any form P9(T), or other tax code notification for the same employee, with an earlier date
  • copy the tax code from the form P9(T) or other tax code notification, to the form P11
  • update any tax codes where you have received a form P9(T) or other tax code notification, after you have set up your forms P11
  • where, exceptionally, you receive the P9(T) or other tax code notification, significantly later than the date from which it is to be applied, contact your HMRC office for confirmation of the code to be used.

What to do if you did not receive a new tax code from us

If we have not sent you tax codes for the new tax year and you were expecting them, please contact your HMRC office for duplicates.

Employee leaving

Do not change the tax code for an employee whose employment with you will finish before the start of the new tax year on 6 April. Use the old tax code.

When you have completed these boxes you are ready to start making your first deductions of PAYE and NICs for the new tax year. For more information on working out PAYE and NICs, see Parts 2 and 3 of Employer Helpbook E13 Day-to-day payroll.

Top 

Tax and NI Tables

The tax and NI calculators on your Employer CD-ROM should meet your needs if you do not use payroll software. They will work out the tax due in the same way as the Pay Adjustment and Taxable Pay Tables and calculate NICs for not contracted-out and contracted-out employees.

Alternatively, from 6 April 2009 please ensure you use either the:

but remember, these may change following the Budget.

Keep and use Tax Tables A (PDF 697K) – also known as Pay Adjustment Tables.

If you deduct NICs from your employees you will find all the appropriate new tables to use on your Employer CD-ROM, or you can order new tables from the Employer Orderline. These must be used from 6 April 2009. If you are unsure which NI Table to use see the flowchart at the beginning of the booklet CA38 National Insurance Contributions (PDF 444K) Table A and J.

Top 

How long to keep records

You must keep the following forms for at least three years after the end of the tax year to which they relate:

  • forms P11 and pay records. This applies even if you paid an employee below the NIC Lower Earnings Limit and did not deduct any PAYE in the tax year, but you used a form P11 to keep records of earnings
  • forms P38(S) or equivalent records, including those relating to students for whom a form P14 has been prepared
  • forms SL1 and SL2 Start and Stop notices in respect of Student Loan deductions.

If you use payroll software

If you do your own reprogramming, there are special notes to help you.

The Notes for Payroll Software Developers are published on a regular basis throughout the year and contain information to help you keep computerised payroll systems up to date with changing legislation.

If you would like to receive advance notification about future releases of the Notes to our website, please send your request, including your name and address, by email to Software Developers, or you can write to

Notes for Payroll Software Developers
PO Box 17289
Edinburgh
EH 12 1WY

If you buy in payroll software for 2009–10 make sure that:

If you are not sure, please check with your software supplier.

HMRC Payroll Standard and Pensioner Payroll Standard

These are two separate accreditation schemes for commercial payroll software. The Payroll Standard is for full payroll software and the Pensioner Payroll Standard is for software that can pay out pensioners.

If a payroll software product displays the HMRC Payroll Standard logo or Pensioner Payroll Standard logo it means that the product has been tested and meets the requirements listed in these documents.

The logo helps employers to identify payroll software products which have the essential features necessary to calculate PAYE, NICs, statutory payments and perform a range of other payroll functions.

To view the Payroll Standard, Pensioner Payroll Standard and a list of accredited products and their suppliers go to Payroll Software Standard.

We can only tell you whether or not a payroll software product has met the Payroll Standard or Pensioner Payroll Standard. If you need further help in choosing a payroll software product, information is available from leading professional bodies within the payroll and computing industries. Alternatively, your accountant or financial adviser may be able to help you.

Top 

Help and further guidance

Help and further guidance about tax and National Insurance contributions (NICs) is available from the following sources.

The Internet

Go to the PAYE area of this website.

Your Employer CD-ROM

Your Employer CD-ROM has most of the forms and guidance you will need to run your payroll throughout the year.

The CD-ROM has:

  • a P11 Calculator that will work out and record your employees’ tax, NICs and Student Loan deductions every pay day with a linked P32 record of deductions that works out what you need to pay us
  • a range of other calculators that work out car and car fuel benefit, statutory payments and Student Loan deductions.

If you have used the P11 Calculator for all your employees during the year and have nine or less employees at 5 April you can send us your Employer Annual Return online.

There is also:

  • a Learning Zone to help you understand payroll topics such as statutory payments, Student Loan deductions and PAYE Online
  • a Payroll Basics section for new and less experienced employers explaining what to do when employing someone for the first time.

Employer Helpbooks

Our employer helpbooks are designed to help you understand and operate PAYE, NICs and other payroll related matters.

The helpbooks are for guidance only, they are not comprehensive and have no legal force.

We also have many other leaflets and booklets that give further guidance, for example:

  • CWG2(2009), Employer Further Guide to PAYE and NICs
  • CWG5(2009), Class1A NICs on benefits in kind
  • 480(2009), Employee travel - A tax and NICs guide for employers
  • 490(2009), Employee travel – A tax and NICs guide for employers

You can view, download and order the full range of helpbooks, booklets and other forms and guidance from our website or from your Employer CD-ROM.

Or you can order copies from the Employer Orderline

  • by phone 08457 646 646
  • by fax 08702 406 406

Forms and guidance in Braille, larger print and audio

For details of employer forms and guidance in Braille, larger print or audio call the Employer Orderline on 08457 646 646 and ask to speak to the Customer Service Team.

Yr Iaith Gymraeg

Ffoniwch 08453 021 489 i dderbyn fersiynau Cymraeg o ffurflenni a chanllawiau.

By phone - Employer Helplines

New employers and employers with less than 3 years payroll experience

New Employer Helpline
Tel 0845 60 70 143
Monday to Friday 08.00 to 20.00, Saturday and Sunday 08.00 to 17.00 pm,

Employers with more than 3 years payroll experience

Employer Helpline
Tel 08457 143 143
Monday to Friday 08.00 to 20.00, Saturday and Sunday 08.00 to 17.00 pm,

If you have a hearing or speech impairment, and use a textphone

0845 602 1380 (only people with specialised equipment such as Minicom are able to use this service)

A list of Helplines and opening hours is available

  • through Contact us
  • on your CD-ROM, and
  • in your Employer Bulletin.

Your HM Revenue & Customs office

Your own HM Revenue & Customs (HMRC) office can also help you. All our office contact details are on our local office contact pages.

Please tell us your employer reference which is on correspondence from your HMRC office.

In person

We can help you with many payroll topics, explaining:

  • what you need to do
  • the deadlines you need to meet
  • the forms you need to fill in
  • the records you need to keep.

This education is available through a range of workshops which are free of charge. Further information is available from our website, or by calling the Advice Team on 0845 603 2691.

Online Services

For information about our online services go to our PAYE Online services page.

For help and assistance using our online services contact the Online Services Helpdesk.

  • email
  • phone 08456 055 999 open seven days a week 08.00 - 20.00.

Top