Information about changes to an employees tax code, previous earnings, student and postgraduate loans and National Insurance Number (NINO) are sent either by post or online via the government gateway account for the PAYE scheme.
You can easily apply any of these notices manually through Shape by editing the employees details, or if you have a paid subscription and you are signed up to receive the notices online, you can use Shape to check for notices and apply them to the correct employee. See our article Manage PAYE notices in Shape to find out more and how to change your online settings to enable you to receive the notices via your government gateway account.
Tax Code Changes (P6 and P9)
An employee's tax code may change during the tax year if their personal tax-free allowance goes up or down.
HMRC will send you an email notification to tell you there has been a notice issued for an employee. You need to log into your PAYE online account (government gateway) and check for the code.
Apply the tax code in Shape
You need to apply the tax code before you next pay your employee. Sometimes the tax code notice will be for the next tax year and will have a start date indicating this.
Within the employee details under tax settings you can edit and apply the new tax code.
If an employee thinks their tax code has been changed by HMRC incorrectly, they need to check their personal tax account and contact HMRC themselves. Link below.
HMRC Further Guidance
Income Tax: general enquiries - guidance for an employee if they need to ask HMRC to update their tax details.