The tool asks for the following information:
From this, the tool provides an amount of tax expected to be deducted in differing pay period and an explanation of what the code means.
With tax code notices coming through a personal tax account by default for many new users, this tool will likely replace the usual explanations that came with paper notices. This tool could be useful to direct employees to if they require further assistance with understanding their tax code.
Check what your tax code means – GOV.UK (www.gov.uk)
Click here to read 5 reasons why small businesses need online payroll services!