Which PAYE code do I use?
This is a freeview 'At a glance' guide to taking on a new employee: which PAYE code do I use?
1. Ensure that your employee completes a PAYE starter checklist. This ensures that you have all their personal details as well as details of their previous job and know whether to make student loan deductions.
2. A new employee who has left previous employment should also provide a P45 which contains their previous tax code. You may be able to continue using this tax code: see PAYE Codes: starters/leavers & 0T codes.
3. If an employee has not provided a P45 or a starter checklist you need to double-check which code to use: see PAYE Codes: starters/leavers & OT codes.
4. If you are employing people who are Welsh or Scottish taxpayers, their code should carry a C or S suffix. See Understanding your tax code.
5. If a code looks wrong contact HMRC: Employers: how to confirm an employee tax code
