Flow chart - new employee tax code procedure

Notifying HMRC of a new employee and establishing the correct tax code to use against their pay is an important part of the general admin and paperwork required when you take on a new worker. If you don’t follow HMRC procedure and as a result under deduct PAYE tax you may be liable for the shortfall.

Flow chart

Our Flow Chart - New Employee Tax Code Procedure will help you decide the correct tax code to use.

For more information about taking on new employees, visit https://www.gov.uk/new-employee/registering

Documents

To help you obtain all the information you need for your records print and ask the employee to complete HMRC’s new starter checklist for your tax records and our New Starter Form for your personnel records.