HMRC have advised that as income tax thresholds and rates will not now be finalised until March, tax codes for 2020/21 will have to be initially calculated using 2019/20 rates and then revised as necessary after the budget.

HMRC expect P9 coding notices to be available online between 10 February 2020 and 10 March 2020 with paper notices expected to arrive with employers on or around 21 March 2020.

  • Once the Budget has taken place, HMRC may need to carry out a recoding exercise to include changes to rates or thresholds and any changes will then be issued to employers on a P6b. The revised codes can only be used by employers on or after the date shown on the P6b.
  • This will also apply to Welsh and Scottish taxpayers as they are entitled to a UK personal allowance.
  • Employers who do not receive paper P9 notices in time for the first pay period on or after 6 April 2020 are advised to request duplicates from the Employer Helpline.

Links to our guides:

How to check your PAYE code
Is my PAYE coding correct? How does HMRC work our tax codes? Why do people ignore their P2 code change notices? Follow the links to expert guidance

Scottish Income Tax Rates
What is the Scottish rate of income tax?

Welsh Income Tax Rates
What is the Welsh Rate of income tax?

External link:

Employer Bulletin: February 2020