This year’s publication ‘Tax codes to use from 6 April 2024’ was issued on 01 February 2024.
There are some points to be taken from the P9X which should be downloaded for future reference:
Tax Code Uplifts
The form tells us of any blanket tax code uplifts to apply at the start of the tax year, yet our current understanding is that the Personal Allowance (and Marriage Allowance) are frozen, so no uplifts apply to letters L, M or N.
The common suffixes are unchanged in value from last year and 2023/24 tax codes should, simply, be carried forward to tax year 2024/25 without any week 1 / month 1 indicators.
The Emergency Tax Code 2024/25
This remains as 1257L, operated cumulatively or non-cumulatively depending on how the new employee completes the Starter Checklist (i.e. box A or box B).
Tax Code Changes
Some tax codes will change and these will be advised to employers to employers / agents on form P9(T) via the annual coding run. Last year, electronic receipt was by 05 March 2023 and paper around 21 March 2023, so expect 2024’s coding run to be similar – online first, then paper.
New Starts Between 06 April 2024 and 24 May 2024
These need consideration where the new starter produces an ‘in date’ P45. This is a P45 that relates to the current tax year (which will be 2024/25) or the one before it (i.e. 2023/24).
The importance of starting up to and including 24 May 2024 is that any in date P45 can be used on a cumulative basis. Where the start date is on or after 25 May 2024, any tax code from a P45 is ignored and the employer should use the Emergency Tax Code on a week 1 / month 1 basis.
It is good to have the P9X far in advance of the start of the new tax year, so bookkeepers may wish to download and retain this for future reference.