Starting April 2024, we have completely automated the way tax codes are collected and updated for the new tax year.
- There is a new input on PAYE Pay Item [click Show all to view] called DPS Update:
2. Before any P9T codes are published by HMRC, the current Tax code continues to operate as before e.g. 779L as above with any Week1_month1, Previous pay and Previous tax
3. As soon as DPS picks up HMRC P9Ts (usually February/March), this value will appear in the DPS Update with a Next Effective Date – however they won’t be used at this point:
4. During the first pay run of the new tax year, any new P9T in DPS Update will be used. Otherwise, the prior year’s Tax Code will be automatically updated to the new year – Week 1_month 1 and any Previous pay and Previous tax are not used.
5. After the first pay run of the tax year is approved i.e., on the 2nd and subsequent pay runs, P9T values will automatically be transferred from DPS Update to the existing Tax code and Effective Date. Then Week 1_month 1 , Previous pay and Previous tax will be cleared/ zeroed:
