PAYE Procedures – Reminders about P46 completion, duplication and payments after leavingMonday, July 7th, 2008
In the latest issue of Notes for Payroll Software Developers, the developers have been asked to take appropriate measures to encourage their clients to comply with the following PAYE procedures.
- When new employees do not provide a form P45, a form P46 must be completed in every case, even if the employer has only partial information with which to complete it. It should be submitted as soon as the employee has been paid for the first time and tax code BR must be used. Not sending in the P46 is a failure to operate PAYE.
- When an employee returns to work again for the same employer and a P46 is produced because not P45 is provided, some computerised systems automatically allocate the starting date from the previous period of employment. The starting date on form P46 must be the starting date of the new employment. Developers are asked to ensure that their systems either prevent the earlier start date being allocated or remind users that the latest commencement date must be used.
- Some computerised payroll systems allow in-year forms to be filed online when a paper version of the form has already been submitted. When employers start to file in-year forms online for the first times, developers are asked to ensure that no option is provided to file online forms that have already been sent on paper. Alternatively, the system should remind users that they should not send an online form if a paper one has already been submitted.
- When a payment is made to an employee who has left and for whom a P45 has already been issued, a second P45 should never be issued. Details of the date, the amount of the payment and the amount of tax deducted should be provided in some other format. Any format, other than a P45 is acceptable, e.g. a typed or handwritten note, or an email, or a note on the payslip.
Notes for Payroll Software Developers – June 2008
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