522L Week1/Month1

kinjal_kspd

Hi

Can you please confirm what is the difference between the code 522L and 522l W1/M1? Also when an employee leaves why dont figures get printed on part 2 and part 3 of P45 when the tax code is 522L W1/M1? I will appreciate if you can give me some official link from HMRC website for this code and its effects?

Thank you

fengirl_2

522L week 1 is emergency code. It means that your previous pay and tax are not known because when you started with this employer you did not have a P45 showing previous pay and tax. The employer therefore takes each week or month's pay in isolation and applies code 522L on that week/month's pay only. It means that if there has been a gap in employment or a reduction in pay, the employee does not get the benefit of a reduction in tax. It is essential when on emergency code to contact your tax office to get them to send your previous pay and tax to your employer so that you can be put on 522L cumulative basis and any refund made.
Pay and tax are not printed on parts 2 and 3 of the P45 where emergency code is in operation bec ause the pay and tax from that particular employer may not be the total pay and tax for that employee for the year.
Trust me without the link - I was an Inspector of Taxes for 26 yrs!