Tax calculation for new starter using/not using P45
For a new starter, if "This is their first job since the start of the tax year" has been selected (A), then any tax and pay figures in the YTD fields should be ignored as they could have been entered for a P45 given for a previous tax year.
Monica Gilbertson
shared this idea
Hi Monica, Thank you for sharing your idea. I wanted to let you know how the system works in this scenario: for a new employee, if this is their first job since the start of the tax year, you should not enter a P45 or any opening balances in their employee record. Leaving these sections blank ensures the system calculates their tax correctly based on their current circumstances.
If you are experiencing specific calculation issues or need additional guidance setting up this employee, we highly recommend reaching out to our support team. They can securely look into your specific account setup and walk you through it. You can contact them by raising a case through Xero Central.
