PAYE11020 - Coding: codes: how they are used and calculated: P2 automatic notes
There are a number of automatically generated notes that will be printed on a customer's P2. These notes will be printed on the P2 under the heading 'special notes' and so they are sometimes also known as automatic special notes. They are included when the system recognises changes during the year to a tax code under specific circumstances.
The automatic notes are named Text A through to Text H and Penal Code. The table below gives a list of the automatic note for the list of circumstances and the P2 explanations for in-year code changes which the system recognises to generate the note shown.
| Circumstance the system recognises | Automatic note on P2 |
| New suffix code less than last operated codeAndWk 1/Mth 1 basis allocatedAndThere is a PUP. For example, code 500H becomes 385T Wk 1, PUP £135.00AndSA indicator is not set | Your tax-free amount for the year has gone down because your tax code has changed. This means that between 6 April [TAX YEAR START DATE] and the date [EMPLOYER NAME] last used your old code you will not have paid enough tax. We think this amount is £[ESTIMATED UNDERPAYMENT]. We will let you know if this amount is right when we check your pay and tax information at the end of the tax year. [EMPLOYER NAME] will now use your new tax code to collect the right amount of tax from now on that you need to pay. |
| New suffix code less than last operated codeAndWk 1/Mth 1 basis allocatedAndThere is a PUP. For example, code 500H becomes 385T Wk 1, PUP £135.00AndSA indicator is set | The amount of tax that you need to pay for the rest of the year has gone up because your tax code has changed. This means that from 6 April [TAX YEAR START DATE] and the date [EMPLOYER NAME] last used your old tax code you will not have paid enough tax. We think this amount is £[ESTIMATED UNDERPAYMENT]. We will let you know if this amount is right when we look at your tax return for the year to 5 April [TAX YEAR END DATE]. [EMPLOYER NAME] will now use your new tax code to collect the right amount of tax that you need to pay, from now on. |
| Old code is a K CodeAndNew K code higher than last operated codeAndWk 1/Mth 1 basis allocatedAndThere is a PUP. For example, code K150 becomes K200, PUP £120.00AndSA indicator is not set | The amount of tax that you need to pay for the rest of the tax year has gone up because your tax code has changed. This means that between 6 April [TAX YEAR START DATE] and the date [EMPLOYER NAME] last used your old tax code you will not have paid enough tax. We think this amount is £[ESTIMATED UNDERPAYMENT]. We will let you know if this amount is right when we check your pay and tax information at the end of the tax year. [EMPLOYER NAME] will now use your new code to collect the right amount of tax from now on that you need to pay. |
| The old code was not a K code and the new code is a K codeAnd Wk 1/Mth 1 basis allocatedAndThere is a PUPAndSA indicator is not set | Your tax code has changed and a “tax is due” amount has replaced your tax-free amount. This means that between 6 April and the date [EMPLOYER NAME] last used your old code you will not have paid enough tax. We think this amount is £[ESTIMATED UNDERPAYMENT]. We will let you know if this amount is right when we check your pay and tax information at the end of the year. [EMPLOYER NAME] will use your new code. [NET CODING ALLOWANCES - without minus sign] will be added to your total taxable income to collect the right amount of tax. |
| Wk 1/Mth 1 basis allocated without a PUPAndThe code does not contain state pension / benefits. For example the individual has started a new job but has not handed in form P45AndYou have not deleted a PUP in the calculation of the tax code | We have told [EMPLOYER NAME] to use this code because we do not know what tax you have paid this year. When we do, we will tell [EMPLOYER NAME] the right tax code to use and if you are due a repayment, you should get this on your next pay day. |
| New code higher than last operated code but remaining on a Wk 1/Mth 1 basis, with PUP reducingAndSA indicator is not set | We have changed your tax code again and your tax free amount for the year has changed. This means that between 6 April [TAX YEAR START DATE] and the date [EMPLOYER NAME] used the old code for the last time you will have had the benefit of too much tax free amount, and therefore owe a different amount of tax. We have worked out the revised underpayment to be about £[ESTIMATED UNDERPAYMENT] but we will check after the end of the year and let you know. Once [EMPLOYER NAME] use the new code you will get a proportion of the new tax free amount (we tell them to use your new code on a special basis) and the tax taken off you should be right from then on. |
| New code higher than last operated code but remaining on a Wk 1/Mth 1 basis, with PUP reducingAndSA indicator is set | We have changed your tax code again and your tax free amount for the year has changed. This means that between 6 April [TAX YEAR START DATE] and the date [EMPLOYER NAME] used the old code for the last time you will have had the benefit of too much tax-free amount, and therefore owe a different amount of tax. We have worked the revised underpayment to be about £[ESTIMATED UNDERPAYMENT] but we will check when we look at your tax return for the year to 5 April [TAX YEAR END DATE]. Once [EMPLOYER NAME] use the new code you will get a proportion of the new tax free amount (we tell them to use your new code on a special basis) and the tax taken off you should be right from then on. |
| If Penal CodingReview form issued for a previous year has not been received. Automatically set by the system | We sent you a form asking about your income (or tax claims) for the year to 5 April last, but we have not had it back yet. As a result, your tax code for this year may not be based on the most up to date information and you could be paying too much tax. Please send us the completed form now, so we can check. If you need another one, please contact us. |
Where one or more of the items listed below are in the code.The coding description will be automatically included in the message and will be one of:
|
If you want to pay the tax due on your [*list the items in code] direct, rather than through your tax code, please tell us. If you do not want to do this and you do not already fill in a tax return we will need to start sending them to you.*The description of the coding item will be included here. |
