UK Payroll - Automatically update tax code
If I run the payroll on say the 22.07 and then a P6 arrives effective from say 25.07 it wouldn't be updated automatically. Surely it should be updated regardless of whether the date relates to a previous period or not? This frequently happens. I can't think of an example of when you wouldn't want the tax code to update automatically?
Stuart Murray
shared this idea
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Jacolyn Warner
commented
I've just discovered this too! Then when I go into the employee taxes, I get messages popping up saying "Automatic tax code updates have been enabled for codes effective from 29 Sep 2025" presumably because the last payroll I ran was dated 28th Sept. So I've just found August codes that arrived after I'd done the August payroll but before the payroll date e.g. I run payroll on 25th but the pay date is 28th. So now one of my employees has paid a lot more tax than he should've done! Useless system! Is this something new happening as I'd not noticed it before??
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Helen DeZwaan
commented
I completely agree with your point. We've received several notices and letters from HMRC indicating that tax codes have not been applied, which is concerning—especially since it's the employees who are ultimately affected.
What’s even more troubling is that the original post dates back to 2022, and yet no action seems to have been taken. -
Monica Gilbertson
commented
just discovered this problem so several tax codes have not been implemented
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Debby Bodman
commented
The tax codes need to updated irrelevant of the date, along with any previous pay and tax paid.
Another problem with Xero is that it does't apply student loan notices so it means I cannot rely on what Xero downloads from HMRC and I always have to login into my HMRC account to check in case if there is any other kind of notice that needs applying other than just P6s..