HMRC are sending out P9 Notice of Coding notifications during the period 10 February 2020 to 10 March 2020. The P9 notices tell employers the code that they need to use for the employee in question for the 2020/21 tax year. They can be accessed electronically from the employer’s PAYE online account. Employers should receive paper P9 notices by 21 March 2020.

Although it is expected, as announced at the time of the 2018 Budget, that the personal allowance for 2020/21 will remain at £12,500, this will not be finalised until the Budget on 11 March 2020. In light of this, HMRC have issued codes for 2020/21 based on 2019/20 rates and allowances. In the event that changes are announced in the Budget, HMRC will undertake a recoding exercise and will issue revised codes on form P6b. Should this happen, employers should note that they should only start using the code shown on the P6b from the date shown on that notice.