We took on a new monthly-paid employee who started on 11 April 2007 and he did not produce a form P45 when he joined. We therefore asked him to complete form P46 and he ticked box “A”. (“My first job since last 6 April”). Unfortunately we applied the old 2006/07 emergency code of 503L from the first pay date on 26 April 2007 rather than using the new emergency tax code of 522L. We are now in tax month 3; do we have a problem?

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