Adding a tax code for an employee

Add a tax code

1. Open the employee detail page.
2. Click the Employment tab.
3. Scroll to Tax codes.
4. Click Add tax code.
5. Fill in:
   • Tax code — e.g. 1257L, K200, BR, SD0 (see What tax codes are supported)
   • Effective from — the date this code starts applying
   • Cumulative — checked = standard cumulative method (recommended); unchecked = W1/M1 non-cumulative
   • Source — p45_starter / p46_starter / hmrc_notice / manual (for audit trail)
   • Notes — optional context
6. Click Save.

Auto-close of previous code

If the employee has a current tax code, adding a new one automatically closes the previous (effective_to = day before the new effective_from). Avoids gaps and overlaps.

Starter declarations

For new hires without a P45:

• Statement A (only job) → 1257L cumulative
• Statement B (had a job earlier this tax year) → 1257L W1 (emergency)
• Statement C (has another job) → BR cumulative

HMRC will issue a coded notice in the first 2-4 weeks; replace the starter code then.