We always hear how "tax doesn't have to be taxing" – and it doesn't with PayStream!
Knowing your tax code is important so that the right amount of tax is deducted each time you get paid.
To make sure you're on the right tax code we'll need your P45 or P46. This document determines your tax code and without it you will be taxed without any personal allowance, so your full earnings will be taxable. This could result in you paying more tax than you should.
The personal allowance for 11/12 is £7,475 which results in a tax code of 747L. This means £7,475 worth of your hard earned wages will not be subject to PAYE.
But don't worry if you are taxed without any personal allowance, as soon as we receive your P45, P46 or a coding notice from HMRC, you'll be automatically put onto the correct tax code and may get back any overpaid taxes.
We hope you now feel clued up about your tax code and the importance of supplying us with your P45 or P46.