New year codes

When processing M1 do you keep the same tax codes as previous tax year but remove the M1 flag unless notified otherwise

Parents
  • +1
    Verified Answer

    Hi Marianne , as the government has frozen the personal tax allowance until 2031 the standard tax code for most employees will be 1257L  an will remain same for 2026/2027 tax year.  this gives an allowance of £12570 

    As Andy has shared below you may receive notices from  HMRC to make changes to individuals where they have had a change of circumstances such as additional benefits or a recalculation for incorrect previous PAYE but for most Employees they should be on same tax code in new year as they were in the last

    Regards

    Steve Watmore

Reply
  • +1
    Verified Answer

    Hi Marianne , as the government has frozen the personal tax allowance until 2031 the standard tax code for most employees will be 1257L  an will remain same for 2026/2027 tax year.  this gives an allowance of £12570 

    As Andy has shared below you may receive notices from  HMRC to make changes to individuals where they have had a change of circumstances such as additional benefits or a recalculation for incorrect previous PAYE but for most Employees they should be on same tax code in new year as they were in the last

    Regards

    Steve Watmore

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