Understanding Tasks for the Start of the Tax Year

At the start of the tax year you need to:

  • Apply changes as instructed by HM Revenue and Customs (HMRC).

    HMRC notifies employers of the procedures to be applied at the start of the new tax year and following the spring budget. At the start of the tax year, this includes week 1/month 1 clear down instructions and any tax code uplifts to implement with effect from the start of the tax year on April 6.

  • Run the Code Number Changes process.

  • Update the Pay Entity Details page for the new tax year.

    Add a new row to the P35 Checklist and Declaration group box to identify the SMP/SAP/SPP recovery rates that will be used for payroll reporting during the new tax year.

    See Defining Pay Entity Details.

HMRC Notifications

HMRC publishes two documents that provide instructions on tax code changes:

  • P9X

    The P9X document is included in the Employer's Annual Pack. At the start of the tax year, instructions received in the P9X should be applied using the delivered Tax Code Uplift process.

  • P7X

    The P7X document is included in the Employer's Budget Pack, which is usually published in May after the spring budget. It notifies employers of procedures to be applied during the tax year, including any tax code increases.

Start of Tax Year Processes

Global Payroll for the UK delivers two processes that you run at the start of the tax year:

  • Tax Code Uplift application engine process (GPGB_TXUP ).

    You run the Tax Code Uplift process for two reasons:

    • To change all the Week1/Month1 indicators to a cumulative basis for the first processing period in a new tax year.

    • To apply the tax code uplifts for the tax year that are detailed in either the P9X (if effective from tax year start) or the P7X (if effective during the tax year as a result of changes announced in the Spring budget).

    Note: When the P9X includes both Week1/Month 1 indicator and tax code uplift instructions, process the Week1/Month1 updates first with an effective date of April 6. Then process the tax code uplift with the same effective date. Specify P9X in the Notification Source field on the run control page for the Tax Code Uplift process.

  • Code Number Changes application engine process (GPGB_CNC ).

    After submitting the information generated by the Pay/Pension Identity Numbers process, HMRC processes the information and sends the new tax codes back on magnetic tape. Use the Code Number Changes process to update employees' tax data based on the file received from HMRC.