HeaderImage

The P9X used to be the ‘not-to-be-missed’ document published by HMRC ahead of the start of the new tax year. This year’s publication ‘Tax codes to use from 6 April 2025’ was issued on 31 January 2025.

ICB highlights the key points for bookkeepers below.

Tax Code Uplifts 

The form tells us of any blanket tax code uplifts to apply at the start of the tax year, yet the Personal Allowance (and Marriage Allowance) are frozen, so no uplifts apply to letters L, M or N.

So, like last year, the common suffixes are unchanged in value and 2024/25 tax codes should, simply, be carried forward to tax year 2025/26 without any week 1 / month 1 indicators.

The Emergency Tax Code 2025/26

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.  Expect 2025’s coding run to be similar as last years’ with online notifications first followed by paper. 

New Starts Between 06 April 2025 and 24 May 2025

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 2025/26) or the one before it (i.e. 2024/25). 

The importance of starting up to and including 24 May 2025 is that any in date P45 can be used on a cumulative basis.  Where the start date is on or after 25 May 2025, any tax code from a P45 is ignored and the employer should use the Emergency Tax Code on a week 1 / month 1 basis.

For Bookkeepers

As always, it is good to have the P9X far in advance of the start of the new tax year.  Although it is not an exciting document to read, ICB recommends you download and retain this for future reference.

 

There is a Spending Review in March 2025 ahead of the start of the tax year.  However, this fiscal event will not change the Income Tax position regarding allowances.

loading