QuickBooksHelpIntuitTurn on HMRC tax code notifications in QuickBooks Payroll
by Intuit•4• Updated 2 months ago
Learn how to enable tax code notifications in QuickBooks Online Payroll.
| This article is for customers who use QuickBooks Online Core, Premium, or Elite Payroll. |
How tax codes work in QuickBooks
Employee tax codes are issued by HMRC. QuickBooks does not create tax codes — it retrieves official updates from HMRC when tax code notifications are enabled.
When notifications are turned on, QuickBooks automatically retrieves tax code changes from HMRC and applies them to employee records. You’ll see updates in the employee list, individual profiles, and during pay runs.
If you are instructed by HMRC to apply a specific tax code, you can also enter or override a tax code manually in the employee profile.
Note: For the most up-to-date information on tax codes and payroll changes, refer to HMRC guidance. You can also check your current tax code using HMRC's online tax code checker
1. Set up HMRC notifications
To receive tax code updates:
- Sign in to the HMRC PAYE dashboard.
- Go to Messages, then select Notice Preferences and Notice Options
- Set all notice options to Yes
This allows QuickBooks to retrieve tax code updates directly from HMRC. If the notice option is not set, you'll see a banner in QuickBooks advising that the PAYE reference is incorrect.
2. Enter your HMRC credentials in QuickBooks
To allow retrieval of those tax updates:
- Select the âš™ icon and select Payroll settings.
- Go to the UK tax tab, and select the ✎ pencil icon.
- Scroll down to HMRC credentials.
- Enter your:
- Gateway user ID
- Gateway password
- Save your changes.
Once saved, QuickBooks will automatically retrieve tax codes from HMRC.
Where tax code notices appear
- Employee list: Alerts appear next to affected employees
- Employee profile: The updated tax code appears under tax details
- Pay runs: New codes apply immediately or at the next payroll