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How does Zoho Payroll handle Scottish and Welsh tax codes?

Zoho Payroll applies the correct Income Tax rates automatically from each employee’s tax code. The prefix on a UK tax code tells payroll which rates to use:

  • S – Scottish rates (for example S1257L)
  • C – Welsh rates (for example C1257L)
  • No prefix – rest-of-UK rates (for example 1257L)

You enter the tax code in the employee’s Tax Details when you add an employee or from their employee profile. Zoho Payroll then calculates PAYE at the appropriate Scottish, Welsh, or rest-of-UK rates.

Which tax code HMRC issues is based on where the employee lives, not their work location, so make sure each employee’s tax code matches the latest one from HMRC. If HMRC or the employee’s starter information says tax should be worked out on a non-cumulative basis, select Apply on a Week 1 / Month 1 basis.