PAYE64020 - employment maintenance: employment history: further action after using function MR

After you have used Function MR, and you are satisfied that you have a complete employment history (ignoring gaps of less than 10 consecutive weeks) from the 6 April CY, you will need to take further action to see if a cumulative code number can be restored. You may need to take into account information displayed in Function TD or Function NO before a cumulative code is issued.

You should use Function TT to calculate a taxpayer’s liability according to the Tax Tables.

Anyone with the appropriate access can use Function TT to calculate the amount of tax due to date by entering the last 2 digits of the current tax year, the current code including the suffix, week number in which the latest employment commenced falls and the total pay to date in format 1. There is no need to enter a NINO

Format 2 will then display

• Free pay
• Addition to pay (K codes)
• Tax due according to the Tax Tables

Compare the Total Tax paid on Function MR with the amount of tax due on Format 2 of Function TT. Where the tax paid is greater than the tax due (This text has been withheld because of exemptions in the Freedom of Information Act 2000)a cumulative tax code can be restored. However, where the tax is underpaid (This text has been withheld because of exemptions in the Freedom of Information Act 2000)the tax code should remain on a Week1 / Month 1 basis.