Your employee's tax code and any necessary updates to payroll information must align with the guidelines set by HMRC (His Majesty's Revenue and Customs), Leah.
Tax codes are issued and regulated by HMRC based on the individual circumstances of your employees, including their total earnings and tax liability. Any changes, such as leaving a job, can affect how HMRC calculates the appropriate tax code.
Regarding the starter declaration letter, it provides HMRC with necessary employment information and is crucial for determining the correct tax treatment of an employee’s earnings. Any updates or changes to employment status should be directly reflected in how HMRC categorizes the employee.
Updating these information incorrectly can lead to compliance issues, which may result in fines or penalties for both the employer and the employee. Thus, we recommend reaching out to the HMRC for guidance on the appropriate tax code based on their current employment situation.
Once you receive the correct tax code or any additional instructions from HMRC, you can then proceed to update this information in QuickBooks.
You can also visit this article for more information about tax code notifications : Standard Payroll Tax Code Notices.
If you have any further questions or concerns in QuickBooks, please feel free to reply below.
