P46 PAYE Procedures – Samples of new 2009/10 available to viewSunday, August 31st, 2008
HMRC is introducing two additional P46 forms from 6 April 2009:
- the P46(Pen) Notification of pension starting will be used for new pensioners, and
- the P46(Expat) Employee seconded to work in the UK will be used for, among others, foreign nationals who are seconded to work in the UK, while remaining employed by an overseas employer.
Sample copies of these new forms have been made available to payroll software developers and they provide a clear indication of how the forms will be used.
P46(Pen) Notification of pension starting
The P46(Pen) is a new single-page paper form, replacing form P160, for use by pension payers where
- no P45 is completed because the pension payer was the pensioner’s employer immediately before retirement, or
- otherwise, a new pensioner does not provide a form P45 (instead of a P46).
The paper form is the equivalent of the existing online PENNOT pension notification. The online version of the form will continue to be known as “PENNOT” and must be used by employers with 50 or more employees.
The pension payer must provide, among other information,
- the pensioner’s name and address, NI number, date of birth and gender, and whether the pension is being paid to a beneficiary of a pensioner who has died
- details of the pension or other payment being made, including the name and address of the employer, the employer’s PAYE reference, the annual amount of the pension and the date payment started, and the tax code allocated
- previous employment details, if applicable, including the name of the previous employer, date of leaving, total pay and tax to date, the tax code applied and the week or month number.
Guidance on completing the form and what tax code the pension payer should allocate will be included in the E13(2009) booklet. A copy of the information provided on the completed form must also be given to the pensioner (not necessarily a copy of the completed form).
P46(Expat) Employee seconded to work in the UK
The P46(Expat) is a new double-sided paper form and will be completed by employees who have been seconded to work in the UK. Such employees include
- individuals working wholly or partly in the UK for a UK resident employer on assignment whilst remaining employed by an overseas employer
- individuals assigned to work wholly or partly in the UK at a recognised branch of their overseas employer’s business
- all individuals included by an employer within a dedicated expatriate scheme
- all individuals included by an employer within an expatriate modified PAYE scheme.
The information that must be provided on the paper form may also be filed online but online filing is a requirement for employers with 50 or more employees.
The form looks very similar to the standard P46. Section One is completed by the employee; Section Two is completed by the employer. The form even has three boxes, A to C, for the employees to indicate their current circumstances. However, there is also a box to tick if the employee is a European Economic Area or Commonwealth citizen. The employer uses the box letter chosen to allocate the appropriate tax code, as follows:
- If the employer is a European Economic Area or Commonwealth citizen, the tax code to be applied, irrespective of any ticks in boxes A to C, is the emergency tax code on a cumulative basis
- Box A is ticked if the employee intends to live in the UK for more than 6 months – the tax code to be applied is the emergency code on a cumulative basis
- Box B is ticked if the employee intends to live in the UK for less than 6 months – the tax code to be applied is the emergency code on a non-cumulative basis
- Box C is ticked if the employee will be working for the employer both inside and outside the UK, but will be living abroad – the tax code to be applied is the emergency code on a non-cumulative basis.
There is also a Box D for the employee to indicate if a UK student loan in being repaid, although it does not apply in Scotland.
Employers who file online will be permitted to obtain the P46(Expat) information from an employee electronically provided that:
- the new employee supplying the information electronically provides exactly the same information as required by the paper form,
- the employer puts in place adequate safeguards which would confirm that it was the in-bound Expat, and no one else, who had provided the information, and
- an adequate audit trail is maintained and is available to HMRC in support of any future query or compliance visit.
This new form may not be used by employers who are employing migrant workers and, as a result, the paper form will not be made available from the Employer Orderline. Employers will be able to download the paper form from HMRC’s website, using a link that will be provided in booklet CWG2(2009) Employer Further Guide to PAYE and NICs.
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