Employee tax codes for the 2020/2021 tax year

The bands remain the same from 6 April 2020.

Bandwidth From To Rest of UK Rate (%) Basic Rate Band
37,500.00 0.001 37,500.00 20.00 Yes
112,500.00 37,500.01 150,000.00 40.00 No
Excess 150,000.01 Excess 45.00 No

The emergency tax codes for 2020/2021 are 1250L W1, 1250L M1 and 1250L X.

When you start processing your first pay run of the new tax year, a window appears showing the relevant employees’ tax codes and the updated tax codes for the new tax year. Simply confirm the changes, then process your payroll as normal.

If HMRC have sent you a P9 (T) notice for individual employees, you must manually change the tax code on their employee record. You must not apply the tax code change until you’re ready to process the pay run that the tax code is effective from.

Read more about payroll year end >>