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 |
|---|---|
| Scenario New suffix code less than last operated code And Wk 1/Mth 1 basis allocated And There is a PUP. For example, code 500H becomes 385T Wk 1, PUP £135.00 And SA indicator is not set |
We have changed your tax code and your tax free amount for the year has gone down. 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 some tax. We work this out 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. |
| Old code is a K Code Scenario New K code higher than last operated code And Wk 1/Mth 1 basis allocated And There is a PUP. For example, code K150 becomes K200, PUP £120.00 And SA indicator is not set |
We have changed your tax code and your “tax is due on” amount for the year has gone up. 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 not have paid enough tax. We work this out 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 be taxed on a proportion of the new tax is due on figure (we tell them to use your new code on a special basis) and the tax taken off you should be right from then on. |
| The old code was not a K code and the new code is a K code. Scenario as above |
We have changed your tax code and the tax free amount for the year (on your previous coding notice) has been replaced by a “tax is due on” amount. This means that between 6 April and the date [EMPLOYER NAME] used the old code for the last time you will not have paid enough tax. We work this out 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 be taxed on a proportion of the tax is due on figure [NET CODING ALLOWANCES - without minus sign] (we tell them to use your new code on a special basis) and the tax taken off you should be right from then on. |
| Special note P91 is not present Scenario Wk 1/Mth 1 basis allocated without a PUP And The code does not contain NIB. For example the individual has started a new job but has not handed in form P45 and You are trying to obtain previous pay and tax details And You have not entered the special note P91 |
We have told [EMPLOYER NAME] to use this code on a special basis. This is because we do not yet have details of any tax you may have already paid this year. When we do, we will tell [EMPLOYER NAME] who will check and if there is a repayment due to you, it will be paid on the next available pay date. Please contact us if you want to talk about this. |
| Special note P91 is present Scenario Wk 1/Mth 1 basis allocated without a PUP And The code does not contain state pension / benefits. For example the individual has started a new job but has not handed in a for P45 and You are trying to obtain previous pay and tax details And You have entered the special note P91 |
We have told [EMPLOYER NAME] to use this code on a special basis. This is because we do not know if you have paid any PAYE tax already this year. We have asked you for your employment details since 6 April [TAX YEAR START DATE] but have not yet received your reply. When we do, we can find out and then ask [EMPLOYER NAME] to check your overall tax position. If there is a repayment due to you, it will be paid on the next available pay date. Please contact us if you want to talk about this. |
| Scenario New suffix or K code higher than last operated code but remaining on a week 1/month 1 basis with PUP reducing And SA indicator not on record |
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. |
| Scenario New suffix code less than last operated code And Wk 1/Mth 1 basis allocated And There is a PUP. For example, code 500L becomes 385T Wk 1, PUP £135.00 And SA indicator on record |
We have changed your tax code and your tax free amount for the year has gone down. 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 some tax. We work this out 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. |
| Scenario New K code higher than last operated And Wk 1/Mth 1 basis allocated And There is a PUP. For example, code K150 becomes K200, PUP £120.00 And SA indicator on record |
We have changed your tax code and your “tax is due on” amount for the year has gone up. 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 not have paid enough tax. We work this out 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 be taxed on a proportion of the new tax is due on figure (we tell them to use your new code on a special basis) and the tax taken off you should be right from then on. |
| Scenario New suffix or K code higher than last operated code but remaining on a Wk 1/Mth 1 basis with PUP reducing And SA indicator on record |
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 Coding Scenario Review 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 prefer to pay the tax due on your [*list the items in code] directly, rather than through your tax code, please let us know. If you do not already complete a tax return and choose to pay the tax directly we will start sending you returns. *The description of the coding item will be included here. |
