Payroll

Question

Hi 
 When should Wk1Mth1 be ticked on Bus Cloud payroll? Is it only during the first month of employment or should it be ticked when a new tax code (for an existing employee) is received - and remain ticked until the end of the tax year? 
 Thanks

David Bulman SBCP SBCA · Accepted Answer

Hi Aline, 
 Thanks for using Community Hub. 
 If the tax code that you have received has 'W1' or 'M1' at the end of it you would tick the box on their employee record, the W1/M1 button makes any tax based on the amount they're paid at the time rather than cumulative which is the normal way of calculating tax. 
 So to recap you would only tick the W1/M1 if directed by their tax code for example '577L W1' or '577L M1' 
 If this has answered your question please click "Verify Answer" 
 Regards, 
 David Bulman 
 Sage UKI

David Bulman SBCP SBCA · Answer

Hi Eline, 
 Thanks for using Community Hub, 
 This should remain ticked until told otherwise by HMRC as the W1/M1 is essentially an emergency tax code, once you receive a tax code change without the W1/M1 marker on it you can untick it and update their tax code 
 If this has answered your question please click "Verify Answer" 
 Regards, 
 David Bulman 
 Sage UKI

Nigel Thompson · Answer

Hi Eline, 
 thank you for using Community Hub. 
 For a new starter with a P45, there is an indicator which tells you to use week1/month1 or not. 
 The indicator is after box 6 but before box 7. 
 Entering a P45 form 
 If the employee has no p45, you would use a P46 declaration. 
 Please read the Previous Tax Details section in the article link below. 
 Create and edit employee records. 
 Select the P46 circumstance which bets matches your new employee. 
 Once the week1/month1 box is ticked within the employee record you only change it if you are instructed to by HMRC. 
 This may come in the form of a P6 or P9, instructions for processing these are in the article link below. 
 Update an employee's tax code (P6 or P9) 
 If you receive a tax code change notice from HMRC which doesn't indicate the week1/month1 should be ticked, you would untick this within the employee record if it is already ticked. 
 If you receive a new tax code change for an employee which has the letter X in the tax code, this also indicates a week1/month1. 
 You don't enter the X into the tax code field like you do with a 1275L tax code. 
 Kind regards, 
 
 Nigel 
 Sage UKI

Sage Payroll UKI

Payroll

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING