Upcoming HMRC activity to support employers with new starters

The HMRC Software Developer Support Team have shared the following information on a new HMRC campaign to improve the accuracy of new starters being reported to HMRC and the correct tax code use.

The campaign commences Wednesday 12th July 2023.


Dear PAYadvice.UK ,

Upcoming activity to support employers with new starters

We know how time consuming it can be for employers when taking on new employees and we want to make this as simple as possible.

As a provider of payroll software, you may get questions from your clients about the information HMRC needs.

What you need to know

From 12 July 2023 we will be contacting employers to provide guidance and support on the common errors they make and what they need to do in future.

Getting this right the first time means they will receive fewer questions from their new employees about their tax, and avoid what can become a stressful and time-consuming issue.

To help employers get their staff on the right starter declaration and tax codes, we’ve pulled together answers to our most frequently asked questions:

  • what to do if their employee doesn’t have a P45? If their new employee doesn’t have a P45, use the starter checklist to find their starter declaration code and the appropriate tax code
  • what tax code to use with starter declaration code C? If the starter checklist determines that the employee should be on starter declaration code C, use tax code BR. If they cannot complete the starter checklist, put the new employee on starter declaration code C and use tax code 0T
  • what PAYE details do employers need to gather from new employees? Ensure they are submitting accurate personal data for the employee (including their name, date of birth and National Insurance number), in the correct format, and verifying these against official documents

Your clients may contact you for help in getting these actions right through your software. Feel free to share this information, to support them in making sure their new employees get paid correctly – including paying the right tax and National Insurance contributions, that protect their entitlement to the state benefits they’ll need later in life.

Yours faithfully

Income Tax Communications Team


PAYadvice.UK 11/7/2023

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