When finalising the current tax year and getting ready to start the new tax year, there are a few tax code changes to consider. It's important that you act on them in the following order:

These should be applied before you run your March payroll.

This is done automatically after you run your March payroll, so all your employees will start the new tax year on a cumulative tax code.

HMRC issues a P9X before the start of each tax year. This sometimes includes a personal allowance increase, which applies to L, M or N suffix tax codes, including those with a prefix of S or C. However, there's no increase in the 2024–2025 tax year.

Employees with the following tax codes won't be affected by a P9X:

HMRC will issue a P9, P6, or P6B notice for any employees who need a new tax code. These tax codes take precedence over a P9X tax code change, so they should only be applied after the P9X.

If they started working for you on or before 24 May of the current tax year, you can use the tax code provided. You must not use the Week 1/Month 1 indicator or the previous taxable earnings and tax paid as these relate to the previous tax year. HMRC will receive this information from the employee's previous employer.

If the employee started working for you on or after 25 May of the current tax year, disregard the P45 and ask the employee to complete a starter checklist.

You can use all of the information from the P45 as usual.

They must complete a starter checklist. The following tax codes must be used, depending on the statement selected: