New Employee tax code Calculator

Every employee is assigned with a tax code by his employer. By putting the tax code into the payroll software, employer can work out how much amount of tax will be deducted from the salary of the employee throughout the year. When a new employee joins the company, employer normally finds out their tax code by using their P45. When the new employee is not having the form P45 issued by a previous employer to give to their new employer before first pay day, the employee is asked to complete the HMRC’S starter checklist. This code is made up of several numbers and a letter. For ex – 1185L.

New employee tax code calculation

Before finding new employee tax code, you should know what details you are required to fill in the calculator. It includes your P45 - when did your employee left his or her last organization, whether their current tax code include BR, OT, DO OR DI?

You have to work out which tax code & starter declaration you have to use in our payroll software, when a new employee joins the organization. You must report this information to HMRC using a full payment submission on or before your employee’s first pay day. You have to update your employee tax code in the beginning of the new tax year. HMRC will e-mail you, if the tax code changes during the year. Then, you have to update your payroll records as soon as possible.

1185L is the most common tax code for tax year 2018 to 2019. It is used for the employees with first job or employees with untaxed income. It is an emergency code only, if followed by W1, M1 or X. Emergency codes are used when the new employee is not having form P45 with him and your new employer will calculate your new tax code on the basis of the answers to the questions on starter checklist “employee statement”.

Employer will use code OT, when you are not having the sufficient information to complete employee checklist.

Work out your new employee's tax code


On or after 6 April 2018

6 April 2017 to 5 April 2018

Before 6 April 2017

You don’t have their P45

Yes

No

Yes

No

Before 25 May 2018

On or after 25 May 2018

Yes

No

According to your employee, which of these situations applies to them?

You’ll need to ask your new starter for this information - known as an employee starter declaration.

This is their first job since 6 April 2018 and they haven’t received taxable Jobseeker's Allowance, Employment and Support Allowance, Incapacity Benefit, or a State Pension or workplace pension

This is their only job, but since 6 April 2018 they’ve had another job, or have received taxable Jobseeker's Allowance, Employment and Support Allowance or Incapacity Benefit. They don’t receive a State Pension or workplace pension

They have another job or receive a State Pension or workplace pension

You’re unable to get a declaration from your employee

According to your employee, which of these situations applies to them?

You’ll need to ask your new starter for this information - known as an employee starter declaration.

This is their first job since 6 April 2018 and they haven’t received taxable Jobseeker's Allowance, Employment and Support Allowance, Incapacity Benefit, or a State Pension or workplace pension

This is their only job, but since 6 April 2018 they’ve had another job, or have received taxable Jobseeker's Allowance, Employment and Support Allowance or Incapacity Benefit. They don’t receive a State Pension or workplace pension

They’ve got another job or get a State Pension or workplace pension

You’re unable to get a declaration from your employee

Please Click The Calculate Button

* This calculator is only for reference purposes. For accurate and detailed report, please consult with an accountant.*

Whether a new employee joins your organization? Whether you are finding difficulty in finding your new employee tax code? Use DNS calculator below to find out your new employee tax code.