2018/19 PAYE Tax Codes Employers' Guide

Tax codes for the 2018/19 tax year apply from 6 April.  It is important that the correct tax codes are used and that payroll software is updated at the start of the new tax year in order that the right amount of tax is deducted under PAYE.

From 6 April 2018 the personal allowance is increased to £11,850.  The emergency tax code for all employees is 1185L and the starting point for PAYE is £228 per week and £988 per month.

HMRC will send you a P9T form for any employees who need a new tax code or a P9X form with general changes for employees whose tax code ends with an ‘L’.  For employees for whom you do not receive a new tax code, the existing codes must be updated for 2018/19 as follows:

  • Tax codes with a suffix of the letter L increase by 35, for example, 1150L becomes 1185L.
  • Tax codes with a suffix of the letter M increase by 39, for example, 1265M becomes 1304M.
  • Tax codes with a suffix of the letter N increase by 31, for example, 1035N becomes 1066N.
  • In addition, all tax codes should have the Wk1/Mth1 Basis check box cleared at the start of the tax year and should not be carried over.

Please let us know if you would like our help with managing your staff payroll.



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REF: MC/NL/1.0