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Administrator Guide
Last Updated: 2024-11-15
Set Up Worker Taxes (UK)

Set Up Worker Taxes (UK)

  • Obtain a worker's details and coding from:
    • P45.
    • P6 or P6B.
    • P7X.
    • P9 or P9X.
    • Completed HMRC Starter Checklist form.
    • Apply UK New Hire Tax Details
       task.
      Example: Importing tax details using optical character recognition. See Steps: Set Up Payroll Taxes (UK).
      If you already used the
      Apply UK New Hire Tax Details
       task, Workday might show the worker's tax details in the
      Add Worker UK Tax Details
       task under
      Current Details
      .
  • If you’ve created an integration with HMRC, process HMRC notifications to obtain any existing tax code details.
  • Security:
    Worker Data: Payroll (Company Specific) - UK
     domain in the UK Payroll functional area.
Enter these tax details for a worker to enable correct coding:
  • Pay As You Earn (PAYE).
  • National Insurance (NI).
  • Student Loan.
  • Postgraduate Loan.
  1. Access the
    Add Worker UK Tax Details
     task.
  2. For a newly hired director, or when an existing worker becomes a director, enter the
    Effective Date
     when their directorship starts.
    When a director becomes an employee midyear, they must remain on the Directors' NI category until the end of the tax year. Change their category to Standard NI at the beginning of the next tax year.
  3. Enter
    Tax Code
     details. As you complete the section, consider:
    Option Description
    Notification Details
    The available fields depend on the
    Notification Source
     you select.
    To reuse the
    Previous Employment Pay
     and
    Previous Employment Tax
     from a previous tax code, leave these fields as zero:
    • Previous Employment Pay
    • Previous Employment Tax
    • Tax Year End
    To enter a previous employment pay and previous employment tax value of zero, complete the
    Tax Year End
     field, and leave these fields as zero:
    • Previous Employment Pay
    • Previous Employment Tax
    Tax Regime
    When you receive notification from HMRC that an employee is liable to tax at the:
    • Welsh tax rate, select
      C
      .
    • Scottish tax rate, select
      S
      .
    Tax Code
    Workday automatically displays the code for some Starter Checklist statements.
    W1/M1 Tax Basis
    Select this check box when the worker's on an emergency tax code.
    P45 Leaver Issue Date
    After termination or transfer from this job, enter the date you issue the worker's P45, not the date on the P45 from their previous employer.
  4. Enter
    National Insurance
     details. As you complete the section, consider:
    Option Description
    NI Category Details
    Select the NI category letter that applies to the worker.
    Calculation Method
    Workday supports:
    • Standard NI.
    • Directors NI standard annual cumulative method.
    • Directors NI alternative method. Workday supports FPS reporting and uses proration of the standard NI calculation. Verify the worker's NI in the final pay period of the tax year and, if necessary, adjust it using the CA44 rules for directors.
  5. Enter
    Student Loan
     details. As you complete the section, consider:
    Option Description
    Repayment Plan
    The Scottish
    Plan 4
     is only valid from 2021-04-06.
    Stop Date
    The date when Workday stops the student loan repayment.
    Stopped without SL2
    Select if you stopped the student loan without receiving a notification. Example: The loan stopped due to rehire.
  6. Enter
    Postgraduate Loan
     details. As you complete the section, consider:
    Option Description
    Stop Date
    The date when Workday stops the postgraduate loan repayment.
    Stopped without PGL2
    Select if you stopped the postgraduate loan without receiving a notification. Example: The loan stopped due to rehire.
To ensure that tax details are correct, view the
UK Pre-Payroll - Workers without Tax and National Insurance Details
 report. Verify that all new workers have tax or NI information. Add any missing details using the
Add Worker UK Tax Details
 task.