PAYE Tax Code FAQs
The basic code is set at 1000L for employees.
Use 1000L for employees unless:
- notification of a different code is advised by HMRC on form P11 or online
- the employee's code was not the basic code last year. In which case expect to add 56 to last year's coding, however it is advised to double check with HMRC, and do not carry forward any month 1/week 1 adjustments
- the employee joined you between 6 April and 24 May and gave you a P45, follow the instructions in the employer handbook.
- the employee has left and you are making a payment after issuing the P45 - see PAYE Codes: leavers & OT code
If in doubt, check online and phone the tax office.
1000L is the defualt code in use.
If your code is lower or higher than expected you need to find out why.
If you receive any benefits from employment or do more than one job, or receive investment income and are a higer rate taxpayer you may find that your PAYE code is restricted in some way.