How Long Does It Take for a Tax Code Change to Show on My Payslip?

Tax code changes can take time to appear on your payslip. Discover how long updates from HMRC take to process, what causes delays, and how to check your records.

Introduction

If you have recently received a new tax code from HMRC, you might be wondering when it will actually appear on your payslip. Changes to tax codes can happen for many reasons, such as starting a new job, getting a company benefit, or correcting a previous error. However, the timing of when that change takes effect can vary depending on how and when HMRC notifies your employer.

This article explains what causes tax code changes, how long it takes for updates to appear on your payslip, and what to do if your new tax code does not show up as expected.

What Is a Tax Code?

A tax code tells your employer how much tax-free income you are entitled to before they start deducting Income Tax from your wages. Most people have a standard code such as 1257L, which means they can earn £12,570 tax-free in the current tax year.

Your tax code may change if:

  • You start or leave a job

  • You have multiple jobs or pensions

  • You receive company benefits such as a car or medical insurance

  • HMRC needs to correct an underpayment or overpayment from a previous year

  • Your personal allowance changes due to higher income or adjustments

Employers rely on HMRC to provide the latest tax code information electronically through the PAYE system. Once received, the payroll department updates your record and applies the change to your next available pay run.

How Long It Takes for a Tax Code Change to Show

In most cases, a new tax code will show on your payslip within one or two pay periods after HMRC issues the update.

Here is what typically happens:

  1. HMRC reviews your circumstances and decides your new tax code.

  2. Your employer receives a P6 or P9 notification (an electronic form) from HMRC with the updated code.

  3. Payroll software updates the code for your next pay run.

  4. The new tax code then appears on your payslip once that pay run is processed.

The exact timing depends on when HMRC sends the notification and how close it is to your employer’s payroll cut-off date.

Example of Typical Timeframes

  • If HMRC sends the update before payroll is processed: The change should appear on your next payslip.

  • If the update arrives after payroll is finalised: It will appear on the following month’s payslip.

  • If you are paid weekly: The change may appear within one to two weeks, depending on how often your employer runs payroll.

  • If you are paid monthly: It usually takes one or two months for the new tax code to show.

Once applied, your payroll system automatically adjusts your year-to-date tax so that you pay the correct amount overall for the year.

Backdated Adjustments

If your tax code change is backdated, your payslip may show an unusually high or low tax deduction for that period. This happens when HMRC instructs your employer to collect or repay tax from previous months in a single pay run.

For example, if your tax code increases to give you more allowance, your next payslip might show a smaller tax deduction as you are refunded the overpaid amount.

What to Do If the Change Does Not Appear

If your new tax code does not appear after two pay periods, follow these steps:

  1. Check your Personal Tax Account on the HMRC website to confirm the correct tax code has been issued.

  2. Contact your employer’s payroll department to ask whether they have received the update from HMRC.

  3. Allow for processing time: HMRC issues updates electronically, but employers must still apply them manually or through payroll software.

  4. If necessary, call HMRC directly: You can confirm whether the update was sent and when it should take effect.

HMRC’s phone lines can be busy, so having your National Insurance number and recent payslips ready will speed up the process.

Common Reasons for Delays

  • Timing: HMRC issued the change after your payroll deadline for the month.

  • Incorrect employer details: If you recently changed jobs and your employer is not yet listed on your HMRC record.

  • Multiple employments or pensions: HMRC may need extra time to calculate your correct tax code.

  • Manual payroll systems: Smaller organisations processing payroll manually may take longer to apply changes.

In most cases, patience is all that is required. Once the new code is applied, any overpaid or underpaid tax will be corrected automatically through future payslips.

Example Scenario

Imagine Alex changes jobs in May, and HMRC updates his tax code in early June. His employer runs payroll on the 10th of each month and has already finalised May’s payments before receiving the update. As a result, Alex’s new tax code appears on his July payslip.

The updated payroll calculation refunds the small amount of overpaid tax from May and June, bringing his records fully up to date.

How to Confirm the Change

When your tax code changes, you should receive:

  • A P2 notice (from HMRC) explaining the change

  • A new code on your next payslip

  • Updated PAYE information in your HMRC Personal Tax Account

Your payslip will show your current tax code next to your gross pay or under the “Tax Code” section. If it does not match the one shown in your HMRC account, contact your employer’s payroll team.

Preventing Future Tax Code Issues

  • Always provide your new employer with your P45 when starting a job.

  • Keep HMRC informed of any changes to your circumstances.

  • Check your tax code regularly through your Personal Tax Account.

  • Contact HMRC immediately if your payslip shows the wrong code for more than two months.

The Role of an Accountant

If you have multiple jobs, benefits in kind, or fluctuating income, an accountant can help ensure your tax code is accurate. They can:

  • Review HMRC notices and explain adjustments

  • Check your payroll calculations for errors

  • Help you claim refunds or correct underpayments

  • Communicate with HMRC on your behalf

Professional advice is especially useful for anyone with complex employment arrangements or self-employed income alongside PAYE work.

Conclusion

A tax code change usually appears on your payslip within one or two pay periods after HMRC issues the update. The exact timing depends on when your employer receives the notification and their payroll schedule.

If the change does not appear after two months, check your HMRC Personal Tax Account and speak to your payroll department to confirm when it will take effect. Once applied, the system automatically adjusts your tax to ensure you pay the correct amount over the course of the year.