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Sage Payroll tax problem

  • Member PM.Dip
  • Practice Licence
  • 29 posts
  • # 112469

Hi , I am new to Sage Payroll and wondered if anyone can help?

Have 3 new employees who started at beg Feb, they all now have P45s and I have entered their tax codes as 1060L.  However, when Sage does the calculations it seems to default to OT W1 with a lot higher tax.  Thy are all paid weekly and earn £450 a week.

Any ideas where I may be going wrong?  Thanks 

  • 794 posts
  • # 112470

Hi,

It looks as if no Starter Checklist was received and details entered into Sage when they were first setup on the payroll - this would result in the tax code 0T W1.

Have you received a notice from HMRC advising you what the new tax codes should be?

Normally you would receive communication from HMRC after submitting the first FPS.

This can be checked and processed through Sage Payroll but as I don't have access to the software I can't give you details how to do it. However, you should be able to get it if you go to the 'help' section in Sage.

Have a look at this on HMRC:

https://www.gov.uk/new-employee/late-p45


  • Member PM.Dip
  • Practice Licence
  • 29 posts
  • # 112476

MM Bookkeeping said:

Hi,

It looks as if no Starter Checklist was received and details entered into Sage when they were first setup on the payroll - this would result in the tax code 0T W1.

Have you received a notice from HMRC advising you what the new tax codes should be?

Normally you would receive communication from HMRC after submitting the first FPS.

This can be checked and processed through Sage Payroll but as I don't have access to the software I can't give you details how to do it. However, you should be able to get it if you go to the 'help' section in Sage.

Have a look at this on HMRC:

https://www.gov.uk/new-employee/late-p45



 

  • Member PM.Dip
  • Practice Licence
  • 29 posts
  • # 112477

Hi, thanks for your reply.

I have submitted 3 FPS returns as they are paid weekly but nothing back from HMRC>  When I log onto Gateway account, there is no record of activity under PAYE so maybe that is where the problem is - I will query with HMRC 


Thanks again 

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