## Zoho Payroll Documentation Index

Access the complete documentation index at:
https://www.zoho.com/uk/payroll/llms.txt

Use this file to discover all available documentation pages before proceeding.

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# How does Zoho Payroll handle Scottish and Welsh tax codes?

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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](/uk/payroll/help/employer/employees/add-employees.html) or from their [employee profile](/uk/payroll/help/employer/employees/manage-employee-profile.html). 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**.