Updating Employee Tax and National Insurance Record


To update an employees national insurance record you need to open the employee file and then click National Insurance Record on the left menu.


Important information on this page includes:

  • Payroll id: This is the same as what the HMRC call employees "Works/Payroll no". It is what gets sent through to HMRC but, if you don’t supply a value, the system will send the software generated id.
  • Employee Statement: This is where you can edit if this is the only job on or before the 5th April, after the 5th April or more than one income.
  • Tax code: The tax code is used to work out how much Income Tax to take from pay or pension. HM Revenue and Customs (HMRC) will tell you which code to use to collect the right tax. The tax code will normally start with a number and end with a letter.
  • Use w1/m1: If you do not pay your employee on a cumulative basis but a week one/month one (w1/m1) then you need to tick this box
  • Student Loan: Tick the box if the employee has a student loan.
  • National Insurance Number: You have a National Insurance number to make sure your National Insurance contributions and tax are recorded against your name only. It’s made up of letters and numbers and never changes. If when your employee started employment and they didn't know their NI number you can add it in here or if it was entered in wrong it can be edited here. 
  • National Insurance Category: Employers use an employee’s National Insurance category letter when they run payroll to work out how much they both need to contribute.
  • Is Company Director: Please tick this box if the employee is a company director.

Click Save when finished.


The Previous Employer (P45) section of this screen is to be filled using the amounts from the employee's previous employer and apply to the current financial year. The employee's default location will be used for reporting purposes.

You will need to enter the Employer PAYE reference, the leaving date, the total pay to date and the total tax paid to date. There is a calculator function to check the calculated PAYE value is the same as the supplied value. 

When you have entered these figures and you are happy with them then you need to press save.


If you have any questions or feedback, please let us know via support@yourpayroll.co.uk

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