The most common tax codes are those ending with ‘L’, the other codes end with ‘P’ or ‘Y’ (age related codes) and now ‘M’ and ‘N’ for employees who transfer or receive up to £1,060 of the personal allowance.
The new ‘M’ and ‘N’ codes are now valid in these areas of Opera:
• Payroll Processing
• Global Tax Code Changes.
Tax codes ending in ‘M’ and ‘N’ can be entered in the Tax Code box. The maximum permitted increase is 106, which equates to £1,060.
• Employees with a tax code of 1060L who receive £1,060 will be given a new code of 1166M (1060 + 106).
• Employees with a tax code of 1060L who transfer £1,060 will be given a new code of 954N (1060 - 106).
Global Tax Code Changes
The Tax Code Changes form (Payroll - Global Changes) records changes in the tax allowance for selected suffix codes.
This form includes boxes for tax codes ending in ‘M’ and ‘N’.
New M and N suffix boxes
These codes will start to be issued by HMRC from April 2015 using the usual P9(T) procedure.
Disclaimer: This document is intended to provide general advice and has been prepared as a guide only. It is the user’s responsibility to decide how they want to proceed with the information given. Intsys UK Ltd accepts no responsibility for any errors, omissions, or misleading statements on these pages.