Starting the tax year from 6 April 2008 for 2008-09
This Helpbook tells you what you need to do to prepare for the start of the new tax year 2008-09.
It explains:
- what records you need to keep from the start of the new tax year 2008-09
- when to use a form P11, Deductions Working Sheet to record details of Pay As You Earn (PAYE) and National Insurance contributions (NICs), and how to fill in the employer and employee details on a form P11
- how to change your employee’s tax code from the start of the tax year 2008-09
- how long to keep the records
This document is also available in Portable Document Format (PDF). To view a PDF you must have Adobe Acrobat Reader installed on your machine.
Contents
- Records you need to keep
- When must I prepare and maintain a form P11 Deductions Working Sheet
- Example of the top of form P11
- Form P11
- Preparing form P11
- Tax and NI Tables
- How long to keep records
- Computer users
- Help and further guidance
Records you need to keep
For each employee you must keep a record of:
- Gross pay (the main things that count are wages or salary and overtime payments)
- Any tax deducted or refunded
- Any NICs deducted or refunded
- Student Loan Deductions
- Your employee's sick absence, including any Statutory Sick Pay (SSP) paid. See the Employer Helpbook E14, What to do if your employee is sick, for more information.
- Your employee's pregnancy, including any Statutory Maternity Pay (SMP) paid. See the Employer Helpbook E15, Pay and time off work for parents, for more information.
- Your employee's paternity absence, including any Statutory Paternity Pay (SPP) paid. See Employer Helpbook E15, Pay and time off work for parents, for more information if your employee was absent because a baby was born. See Employer Helpbook E16, Pay and time off work for adoptive parents, for more information if your employee was absent because a child was being adopted.
- Your employee's absence on adoption leave, including any Statutory Adoption Pay (SAP) paid. See Employer Helpbook E16, Pay and time off work for adoptive parents, for more information.
When must I prepare and maintain a form P11 Deductions Working Sheet?
You must prepare and maintain a form P11 Deductions Working Sheet (or equivalent record) when either:
- you pay your employee
- *£90, or more in any week (National Insurance contributions weekly Lower Earnings Limit)or
- *£390, or more in any month (National Insurance contributions monthly Lower Earnings Limit)or
- *If your pay period is other than weekly or monthly please see the Employer Helpbook CWG2 Employer Further Guide to PAYE and NICs
- HMRC have issued you with a tax code for your employee
- you are required to operate a tax code taken from your employee's P45
- you have paid your employee and you are required to operate tax code BR in accordance with the P46 procedures detailed in the Employer Helpbook E13, Day-to-day payroll
If you are not required to maintain a form P11 Deductions Working Sheet, you must keep a record of the employee's name, address and the amount of wages paid each pay period, for example weekly/monthly/four weekly.
Form P11
Check you are using the right form P11.
Example of the top of form P11 (PDF 48K)
If you do not use payroll software HM Revenue & Customs provides:
- a P11 Calculator on your CD-ROM. The P11 Calculator will work out and record your employees’ PAYE tax, National Insurance contributions (NICs) and any student loan deductions every pay day. It also has a linked P32 ‘record of deductions’ that works out how much you need to pay us.
- a paper form P11, Deductions
Working Sheet (PDF 232K). You can order copies from the Employer Orderline
- from our website at Employer Orderline pages
- by phone on 0845 764 6646
- by fax on 0870 240 6406
The P11 is a double-sided form and on each side:
- the left hand section has columns 1a to 1e for recording NICs, 1f to 1i for recording Statutory Payments (SSP, SMP, SPP and SAP), and 1j for recording Student Loan Deductions
- the right hand section is headed ‘PAYE Income Tax ’ and has columns 2 to 8 for recording pay and tax
Alternatively you can use equivalent documents which must contain all the details you would record on the form P11.
Preparing form P11
At the start of the new tax year prepare a form P11 and fill in boxes A to K using the details from the form P11 or your payroll software that you have been using for 2007-08. The following guidance will help you.
| Box | Details |
|---|---|
| Box A | Employers name |
| Box B | HM Revenue & Customs office name and Employer PAYE reference - you'll find this on the P11 or your payroll software that you have been using for 2007-08. Alternatively, you can find this number on the front of your P30BC, Payslip Booklet. |
| Box | Details |
|---|---|
| Box C | Employee's surname |
| Box D | Employee's forename(s) - up to two forenames only. If you don't know the employee's full forename(s) put their initial - or initials - in this box but make efforts to find out their full forename(s) before the end of the tax year. |
| Box E | Employee's National Insurance number - this must be two letters, six numbers followed by one letter (for example, AB123456C). This is an example only and should not be used where an employee does not provide their NI number. For more information about tracing National Insurance numbers, see part 4 of the Employer Helpbook E13, Day-to-day payroll. |
| Box F | Employee's date of birth - this must be entered in figures using the format DD MM YYYY, for example, 04 02 1959. |
| Box G | Works/payroll no. etc - if you use a works or payroll number system to identify your employees enter the reference in this box. |
| Box | Details |
|---|---|
| Box H | You do not need to fill in this box unless the employee starts work with you on or after 6 April 2008. |
| Box I | This box should only be filled in if your employee stops working for you in the 2008-09 tax year. |
| Box | Details |
|---|---|
| Box J | Enter a tick in this box, if you were required to make Student Loan Deductions for the employee at the end of the previous tax year. If you received a Stop notification, you should still enter a tick if it did not come into effect until after 5 April 2008. |
We recommend that you carry out the new tax year code amendment process as follows:
Employees without a new tax code
Carry forward the authorised tax code from last year’s form P11 to the 2008-09 form P11, but if you have received a 2007-08 tax code on a form P6 too late to use in 2007-08 carry forward this code instead
- add 21 to any tax code ending in L. For example, 522L becomes 543L.
- do not copy or carry over any ‘week 1’ or ‘month 1’ markings – the code must be operated on a cumulative basis.
If a tax code ending in A or H is being carried forward contact us immediately.
Employees with a new tax code
- keep and use the form P9(T) or other tax code notification, with the most recent date for each employee (if you have more than one, use the most recent one)
- do not add 21 to the tax code where you have a P9(T) or other tax code notification for 2008-09
- scrap any form P9(T), for the same employee, with an earlier date
- copy the tax code from the form P9(T) or other tax code notification, to the form P11
- update any tax codes where you have received a form P9(T) or other tax code notification, after you have set up your forms P11
- where, exceptionally, you receive the P9(T) or other tax code notification, significantly later than the date from which it is to be applied contact your HMRC office for confirmation of the code to be used.
What to do if you did not receive a new tax code from us
If we have not sent you tax codes for the new tax year and you were expecting them, please contact us for duplicates:
- for electronic notification contact the Online Services Helpdesk on 0845 605 5999
- for paper forms or lists contact your HMRC office.
Employee leaving
Do not change the tax code for an employee whose employment with you will finish before the start of the new tax year on 6 April, even if because of ‘lying time’, you are going to pay them after that date. Use the old tax code.
When you have completed these boxes you are ready to start making your first deductions of PAYE and NICs for the new tax year. For more information on working out PAYE and NICs, see Parts 1 and 2 of Employer Helpbook E13, Day-to-day payroll.
Tax and NI Tables
The tax and NI calculators on your Employer CD-ROM should meet your needs if you do not use payroll software. They will work out the tax due in the same way as the Pay Adjustment and Taxable Pay Tables and calculate NICs for not contracted-out and contracted-out employees.
Alternatively, from 18 May 2008 to 6 September 2008 please ensure you use either the
From 7 September 2008 please ensure you use either the
but remember, these may change following the Budget.
Keep and use Tax Tables A - also known as Pay Adjustment Tables.
If you deduct NICs from your employees you will find all the appropriate new tables to use on your Employer CD-ROM, or you can order new tables from the Employer Orderline. These must be used from 6 April 2008. If you are unsure which NI Table to use see the flowchart at the beginning of the booklet CA38, National Insurance Contributions Table A.
How long to keep records
You must keep the following forms for at least three years after the end of the tax year to which they relate:
- Forms P11 and pay records. This applies even if an employee does not pay any PAYE or NICs in the tax year, but you have completed a form P11 to keep records of earnings.
- Forms P38(S) including those relating to students for whom a form P14 has been prepared.
- Forms SL1 and SL2, Start and Stop notices in respect of Student Loan deductions.
Computer users
If you do your own reprogramming, there are special notes to help you.
The Notes for Payroll Software Developers are published on a regular basis throughout the year and contain information to help you keep computerised payroll systems up to date with changing legislation.
The Notes are available on our website Online Services: notes for software developers pages.
If you would like to receive advance notification about future releases of the notes to our website, please send your request, including your name and address, by email or you can write to
Notes for Payroll Software Developers
PO Box 17289
Edinburgh
EH 12 1WY
If you buy in payroll software for 2008-09 make sure that:
- all the detail in this Helpbook is included and
- the program covers the changes from 6 April 2008 to PAYE and NICs rates and limits, as given in Helpbook E12, PAYE and NICs rates and limits for 2008-09.
If you are not sure, please check with your software supplier.
Payroll Standard
If a payroll software product displays the HM Revenue & Customs Payroll Standard logo it means that the product has been tested and meets the requirements listed in the Payroll Standard document.
The logo helps employers to identify payroll software products which have the essential features necessary to calculate PAYE, NICs, Statutory Payments and perform a range of other payroll functions.
You can view a list of accredited software products or call our Payroll Standard Helpline on Tel 0845 915 9146 (09.00 to 17.00 Monday to Friday).
Help and further guidance
Help and further guidance about tax and National Insurance contributions (NICs) is available from the following sources:
The Internet
Go to the Employers area of this website.
Your Employer CD-ROM
Your Employer CD-ROM has most of the forms and guidance you will need to run your payroll throughout the year.
The CD-ROM has:
- a P11 calculator that will work out and record your employees’ tax, NICs and Student Loan deductions every pay day with a linked P32 record of deductions that works out what you need to pay us
- a range of other Calculators that work out car and car fuel benefit, Statutory Payments and Student Loan deductions
- a P45 checker that tells you what gross pay and tax to date figures to enter on the P11 for a new employee
There is also:
- a Learning Zone to help you understand payroll topics such as Statutory Payments, Student Loan deductions and PAYE Online
- a Payroll Basics section for new and less experienced employers explaining what to do when employing someone for the first time
Employer Helpbooks
Our Employer Helpbooks will help you understand and operate PAYE, NICs and other payroll related matters.
The Helpbooks are for guidance only, they are not comprehensive and have no legal force.
There are also other leaflets and booklets that give further guidance, for example:
- CWG2(2008), Employer Further Guide to PAYE and NICs
- CWG5(2008), Class1A NICs on benefits in kind
- 480(2008), Employee travel - A tax and NICs guide for employers
- 490(2008), Employee travel – A tax and NICs guide for employers
You can view, download and print the full range of Helpbooks, booklets and other forms and guidance from:
- the Employers area of this website
- or your Employer CD-ROM
Or you can order copies from the Employer Orderline
- from the Employers Orderline area of this website
- by phone on Tel 08457 646 646
- by fax 08702 406 406
Forms and guidance in Braille, large print and audio
For details of employer forms and guidance in Braille, large print or audio call the Employer Orderline on Tel 08457 646 646 and ask to speak to the Customer Service Team.
Yr Iaith Gymraeg
Ffoniwch 0845 302 1489 i dderbyn fersiynau Cymraeg o ffurflenni a chanllawiau.
By phone - Employer Helplines
(We may record calls for quality and training purposes.)
New employers and employers with less than 3 years payroll experience
New Employer Helpline
Tel 0845 60 70 143
Open from 8.00 am to 8.00 pm, Monday to Friday and 8.00 am to 5.00 pm, Saturday
and Sunday
Employers with more than 3 years payroll experience
Employer Helpline
Tel 08457 143 143
Open from 8.00 am to 8.00 pm, Monday to Friday and 8.00 am to 5.00 pm, Saturday
and Sunday
If you have a hearing or speech impairment, and use a textphone
0845 602 1380 (only people with specialised equipment such as Minicom are able to use this service)
A list of Helplines and opening hours is available
- on our website
- on your CD-ROM, and
- in your Employer Bulletin.
Your HM Revenue & Customs office
Your own HM Revenue & Customs office can also help you. All our office contact details are on our website at local office contact pages.
Please tell us your employer reference which is on correspondence from your HM Revenue & Customs office.
In person
We can offer you education and support on all aspects of your payroll explaining
- what you need to do
- the deadlines you need to meet
- the forms you need to fill in
- the records you need to keep.
We also have a range of workshops which are free of charge on many payroll topics.
You can get further information about the workshops from the Business Support teams pages, or you can call the
- New Employer Helpline on Tel 0845 60 70 143
- Employer Helpline on Tel 08457 143 143
Online Services
For information about our online services go to our PAYE Online services page.
For help and assistance using our online services contact the Online Services Helpdesk.
- Tel 0845 60 55 999
open 7 days a week from 8.00 am to 8.00 pm
