If your company has electronic tax status updates switched on, tax updates including tax codes and student loan notices automatically pull in from HMRC. If you’ve not chosen to also turn on Auto-apply, you’ll need to manually accept or reject any tax updates for team members as you receive them.
View tax updates
To check tax updates for team members in a company:
Click the company’s Payroll tab then click Current period.
If there’s any updates from HMRC, they’re highlighted with a count against the Get tax updates button.
To view the updates, click Get Tax updates.
Alternatively:
On Current Period, click Alerts.
Against the Tax Updates alert, click Review updates.
This shows you a list of the tax updates pulled in from HMRC.
Accept and reject tax updates
Once in your tax updates, you can begin accepting and rejecting the tax updates. By default, they’ll all be set to Accept, but if for any reason you need to reject the updates, switch the toggle against the relevant update. For tax updates that you’re rejecting, you’ll also need to add a reason for rejection from the dropdown list.
Once you’ve configured all updates, click Accept updates.
Validate tax updates
To pull a tax code into Paycircle from HMRC, you need to validate the data HMRC are sending against the data stored in Paycircle. Paycircle follows the below rules when applying tax code updates to employees:
If National Insurance Number matches, Surname matches and HMRC ID matches – the tax code update applies.
If National Insurance Number matches, Surname doesn’t match, HMRC ID matches – the tax code update applies.
If National Insurance Number matches, Surname matches, HMRC ID doesn’t match – the tax code update applies.
If National Insurance Number matches, Surname doesn’t match, HMRC ID doesn’t match – the tax code doesn’t apply.
If National Insurance Number doesn’t match, Surname matches, HMRC ID matches – the tax code doesn’t apply.
If National Insurance Number doesn’t match, Surname doesn't match, HMRC ID matches - the tax code doesn’t apply.
If National Insurance Number doesn’t match, Surname matches, HMRC ID doesn't match - the tax code doesn’t apply.
If National Insurance Number doesn't exist in HMRC and/or Paycircle, Surname matches, HMRC ID matches - the tax code update applies.
If National Insurance Number doesn't exist in HMRC and/or Paycircle, Surname doesn't match, HMRC ID matches - the tax code doesn’t apply.
If National Insurance Number doesn't exist in HMRC and/or Paycircle, Surname matches, HMRC ID doesn't match - the tax code doesn’t apply.