HMRC Announces Tax Code Updates for 2026/27 Tax Year
HMRC has released the P9X tax codes to be used from 6 April 2026, impacting payroll processing for UK employers.
HMRC has released the P9X tax codes to be used from 6 April 2026, impacting payroll processing for UK employers.
HM Revenue & Customs (HMRC) has published the P9X tax codes applicable from 6 April 2026, marking the start of the 2026/27 tax year. The basic Personal Allowance remains at £12,570 for the entire UK, with the PAYE starting point set at £242 per week (£1,048 per month). The emergency tax code for all employees is 1257L. Employers are advised to prepare payroll records accordingly, ensuring the correct tax codes are applied to each employee's record. HMRC will notify employers of any new tax codes via paper form P9(T) or through the PAYE Online service. (gov.uk)
Employers must update their payroll systems to reflect these new tax codes, ensuring accurate tax deductions from employees' wages. Failure to implement the correct codes can lead to under or overpayment of taxes, potentially resulting in compliance issues. It's essential to review and adjust payroll records before processing payments from 6 April 2026.
At Sterling Payroll Solutions UK, based in Exeter, Devon, we specialise in managing payroll compliance for businesses of all sizes. Our services ensure that your payroll is processed accurately and in line with the latest HMRC guidelines. For hands-on support with tax code updates and overall payroll management, book a free consultation with our Exeter payroll bureau at sterlingpayrollsolutions.co.uk/book.
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