Payroll Tax

Employment tax, primarily Income Tax and National Insurance (NI), is handled on a day to day basis by the Payroll Team. The University is required, under the Pay As You Earn (PAYE) regulations, to deduct tax at source from any payments made in the nature of employment. This means that any payments made to individuals for employment purposes will have tax and NI deducted before the payment is made, unless there is a specific exemption for the payment being made.

Note: employment status for taxation purposes may differ from employment status for contract and employment law purposes.

The Employment Status and Payments in the Nature of Employment web page provides detail on what should be taken into account. It is particularly important that this guide is consulted when considering contracts which might be considered as 'consultancy' arrangements or ones of 'self-employment'.

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University PAYE reference: Main Payroll 075/Z1035

 

  • Tax office
    Address: HMRC South Wales Area, Ty Glas, Llanishen, Cardiff CF14 5YF
    Employees' helpline: 0300 200 3300
    Do you need to update your personal details with HMRC?

     

  • Online Personal Tax Accounts (PTAs)

    PTAs have been available for all Pay As You Earn (PAYE) employees since December 2015.

    The account is a secure and simple way for you to manage your tax affairs online.

    What can it do?

    HMRC can only work from the information that it has, so if you have a change in your financial circumstances or address please let HMRC know through your PTA.

    You can also:

  • Print proof of your National Insurance number (handy for new employees completing new starter checklists)

  • View and print a copy of your pay and tax details for the last 4 tax years
  • Update the information HMRC hold on the benefits you may receive
  • Check your state pension situation – explore when you can start to receive it and how much you are likely to get
  • Claim a tax repayment; if you have received a letter from HMRC advising that you’ve paid too much tax over the course of the year you can claim your rebate online. HMRC state that the full refund will be paid into your bank account within five working days
  • For tax credits, check your payments, make changes to your circumstances and complete your renewals.
     
    How can you learn more?
     
  • The Personal Tax Account is intuitive and straightforward to set up. To get started please go to https://www.gov.uk/personal-tax-account
  • Her Majesty's Revenue and Customs (HMRC)
    Website: www.hmrc.gov.uk
     
  • Security and HMRC
    This guidance explains how to recognise genuine contact from HMRC, and how to tell when an email is phishing/bogus.
     
  • Tax bands and rate
    The current tax bands and rates can be found on the HMRC web pages.

Most forms can be downloaded from the HMRC's website; HMRC download area

Tel: 0845 7646 646
Website: HMRC download area and online order form

 

P45
This is statement of earnings and tax deductions in the current tax year given to you on ceasing employment (UK only). You should retain Part 1A for your own records and Part 2 and 3 should be given to your new employer even if they are out of date.

Expat Starter Checklist
Employees currently employed by their overseas employer but seconded to work wholly or partly in the UK, must complete an Expat Starter Checklist obtainable on the HMRC's website:

Download: Expat Starter Checklist

Starter Checklist
Employees who have not worked previously in the current tax year, or have not been issued with a P45 certificate from their previous employer must complete a Starter Checklist. These can be obtained from your departmental administrator or found on HMRC's website:

Download: Starter Checklist

P50 
If after leaving University employment you are unemployed and expect to be unemployed for at least 4 weeks, will not be claiming Jobseekers Allowance or taxable Incapacity Benefit and have paid tax since 5 April last, you may be able to claim a refund of some of the tax deducted. After 4 weeks have elapsed you will be able to complete a P50 to apply for the refund. This should be sent to the tax office (address above) along with your P45. P50s can be downloaded from HMRC's website:

Download: Form P50

P60 
A statement issued by employers at the end of each tax year detailing your earnings and tax deductions for the tax year just ended. The law requires you to keep a record of your taxable income for at least 22 months after the end of the current tax year, so make sure you keep it in a safe place. Should your P60 be mislaid please see HR Self-Service.

P85 
If you have left or are leaving the UK after terminating your employment with the University, complete a P85 so that the tax office can decide how they should consider you for UK tax purposes after you leave. P85 can be downloaded from HMRC's website:

Download: Form P85

Only some people have to complete a Self Assessment form as most tax is taken at source, e.g. PAYE for salaries. However some employees, such as people recently coming to the UK, will need to complete a Tax Return. Further information can be obtained from HMRC's website:

Website: HMRC: tax self assessment

Key dates for completing and sending back a Tax Return for self assesement are:

  • 6 April: A Tax Return or Notice to Complete a Tax Return (SA316) will be sent out to all people who get a tax return each year.
  • 30 September: You need to send your Tax Return to HMRC by this date if you want them to calculate your tax; they will then inform you how much you need to pay. You need to send in your tax return by this date if you have indicated on your return that you want them to collect your tax (below £2,000) through next year's PAYE code. If you submit your Tax Return over the internet, the software and online forms will calculate your tax liability.
  • 31 January: If you were sent a Tax Return by 31 October in any previous tax year, this is the deadline for sending back your completed Tax Return.

Tax credits have been replaced by Universal Credit for most people.

You can only make a new claim for tax credits if you get the severe disability premium or got it in the past month and are still eligible for it.

If you cannot make a new claim for tax credits, you may be able to apply for:

.

Website: HMRC: tax credits

HMRC information on self employment:

For advice regarding your employment status with the University, please refer to Personnel Services website.

 
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