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PAYE – ‘L’ Tax Code
Increases
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At the start of a tax year, HMRC will issue
instructions to increase all L tax codes by a specific amount, rather than
notifying individual changes to every tax code. This can be implemented across
all pensioners by selecting ‘System, L tax code increases’, This
menu option is only available to users with Payroll rights.
Before
running this program, new tax year records have to be created using
‘System, New PAYE Tax Year’.
The
appropriate tax year has to be entered (Omni will default to the tax year
ending in the next calendar year).
The
amount by which to increase all tax codes has to be entered (e.g. enter 50 to
increase a tax code of 600L to 650L.
If
you need to reverse the changes, run the program again using a negative number
(e.g. -50).
The changes are sent
to an Excel spreadsheet, including the previous tax code and the new tax code.
See also New PAYE Tax Year