PAYE – ‘L’ Tax Code Increases

 

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

Pension Data,

                                PAYE Member Screen

                                PAYE Reports and Processing