The first payslip after a move: correcting an emergency tax code in 2026-27
Changing jobs is rarely only an employment matter. Payroll information travels imperfectly between employers, and the first payslip from a new workplace can show more tax than expected because the payroll system has not yet received a P45 or because a starter checklist answer has produced an emergency code. The effect is often temporary, but it can feel like a permanent deduction. For 2026-27, the remedy is mostly administrative: establish which code has been used, compare it with HMRC’s record, and correct the position before the year-end.
Why the first payslip after a move can misstate tax
An emergency tax code usually operates on a non-cumulative basis. Instead of spreading the personal allowance across the year and taking account of pay and tax already suffered with a previous employer, the payroll applies a slice of allowance to each pay period. A BR code is blunter still: it taxes all pay at the basic rate and gives no allowance. A 0T code gives no allowance at all.
When a new employer has no P45, it may use a starter checklist. The answers can produce a temporary code that is not the same as the employee’s final code for the year. That is why the first payslip can look wrong even when the payroll has followed the information available to it. The deduction is not necessarily a final tax charge; it is a provisional calculation waiting for better data.
Reading the code rather than guessing
The tax code on a payslip is a compact instruction to payroll. The number represents the allowance being applied, while the letter indicates the employee’s circumstances. A standard code might be 1257L for 2026-27, but a W1 or M1 suffix signals that the code is being operated on a week-one or month-one basis. BR means all pay is taxed at basic rate. 0T means no allowance has been given.
The practical test is comparison. The code on the payslip should match the code HMRC has recorded for that employment. An individual can check this through their personal tax account. If the two do not agree, the payroll may be working from an old code, a starter checklist answer or no P45 at all. Correcting the code is usually more effective than trying to reclaim a small overpayment month by month.
The paper trail: P45, starter checklist and P60
The P45 is the central document. It records pay and tax to the leaving date and gives the new employer the cumulative figures needed to apply the right code. Parts 1A, 2 and 3 have different destinations, but from the employee’s point of view the important step is to give the P45 to the new employer promptly. A copy should be kept.
If the P45 has been lost, a starter checklist is the fallback. It is not a substitute for a P45, but it gives the employer enough information to operate a code while HMRC catches up. At the end of the tax year, a P60 from the employer in post on 5 April summarises pay and tax for that employment. Where an individual moved during 2026-27, the old employment’s P45 and the new employer’s P60 together reconstruct the year.
Checking HMRC’s view before the year closes
The personal tax account is the quickest way to see which employments HMRC has recorded and which tax codes it has issued. If an emergency code is still in operation after the P45 has been processed, the employee can ask HMRC to review the code. HMRC can issue a revised code to the employer, which may allow the allowance to be restored through future payroll rather than through a separate claim.
This is not the same as filing a self-assessment return. It is a PAYE correction. The earlier it is done, the more of the year remains available for the adjustment to work through payroll. Leaving it until March or April may mean the overpayment cannot be fully absorbed by later payslips and has to be recovered after the year-end.
The P800 and the refund route
After 5 April, HMRC reconciles PAYE records for the year. If the reconciliation shows an overpayment, HMRC may issue a P800 calculation. The P800 is not a tax return and does not require the recipient to calculate the tax again, but it should be checked against payslips and P60s. A refund can be paid by bank transfer or cheque, or set against other tax due.
If the P800 shows an underpayment, the same document will explain how it is to be collected. The important point is that a P800 is a reconciliation, not a penalty. It is the system correcting itself after the year has closed. Where the figure looks wrong, the records should be gathered before responding.
Correcting 2026-27 without waiting for self-assessment
Self-assessment is not the default remedy for a PAYE overpayment. It becomes relevant where the individual has other reasons to file, such as self-employment income, higher-income child benefit charges or untaxed savings income. For a straightforward employment move, the PAYE route is usually enough: give the P45, check the code, ask HMRC to review, and keep the paperwork.
If a return is required for other reasons, the pay and tax figures from the P45 and P60 should be entered accurately. The return can then correct the year, but it should not be used simply because the first payslip looked alarming. The administrative route is quicker and less burdensome where it applies.
A calm sequence for the first month
On starting a new job, hand over the P45 as soon as possible and keep a copy. Compare the first payslip’s tax code with the code shown in the personal tax account. If the code is an emergency or BR code, ask payroll whether the P45 has been processed and, if not, ask HMRC to review the code. Keep payslips, the P45 and any starter checklist. At the end of the year, check the P60 and, if no return is needed, watch for a P800 before assuming the overpayment has been lost.
The first payslip after a move is often a provisional document, not a final verdict. Treating it as a signal to check the code, rather than as a reason to panic, is usually the most measured response.
