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Employer FAQ – P45 Procedures for Starters
Monday, November 3rd, 2008
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What procedures must be followed when applying the details from a P45 for a new employee? (Part 3)
Part 1 of this Employer FAQ considers the checks that an employer must make to the first six of the seven items that appear on Part 2 of a form P45 that is provided by a new employee. Part 2 explains the check that must be carried in all cases to ensure that the tax deducted from the employee’s future earnings, as entered at item 7 is calculated correctly.
When all of the checks to items 1 to 7 on Part 2 of the P45 have been completed, the additional items on Part 3 of the P45, i.e. items 8 to 17 on the A5 version of the P45 that is in use throughout 2008/09, or items 8 to 18 on the A4 version that is in use from October 2008, must be submitted to HMRC, either by completing the paper form and sending it to the tax office by post, or by entering the details in the payroll system or on HMRC’s own online pages and filing the details online. From 6 April 2009, P45 Part 3 details must be filed online if the PAYE scheme to which the new employee belongs has 50 or more employees.
The following notes show the details that are required:
Four-part A5 version, in use for whole of 2008/09
Item 8: enter the new employer’s PAYE reference, to enable HMRC to transfer the employee’s tax records from the tax office of the previous employer to the tax office of the new employer.
Item 9: enter the date on which the new employment began.
Item 10: enter the employee’s works number and department/branch number, together with a tick if the employer wishes the tax office to quote the references on any tax code notifications.
Item 11: enter ‘P’ in the box provided if the employee will not receive any pay between the day the employment started and the following 5 April; i.e. the employee’s first wage or salary payment will be taxed in the next tax year.
Item 12: enter the tax code (including an ‘X’ as the W1/M1 indicator, where appropriate) that the employer will apply from the date the employee started where it differs from the code used by the previous employer. (But, if the change to the tax code is simply as a result of applying P7X instructions, the new tax code should be entered alongside the old code shown at item 6.)
Item 13: enter the amount of tax that should have been paid in the previous employment, where this differs from the figure quoted by the previous employer, as determined by the new employer from the mandatory check of item 7.
Item 14: enter the employee’s private address.
Item 15: enter the employee’s date of birth, if the employer knows it.
Item 16: enter the job title used by the employer in respect of the employee’s duties.
Item 17: enter the employer’s name, address, and date of completion, declaring that a payroll record has been opened for the new employee.
Four-part or three-part A4 version, in use from October 2008
Item 8: enter the new employer’s PAYE reference, to enable HMRC to transfer the employee’s tax records from the tax office of the previous employer to the tax office of the new employer.
Item 9: enter the date on which the new employment began.
Item 10: enter the employee’s works number and department/branch number, together with a tick if the employer wishes the tax office to quote the references on any tax code notifications.
Item 11: enter ‘P’ in the box provided if the employee will not receive any pay between the day the employment started and the following 5 April; i.e. the employee’s first wage or salary payment will be taxed in the next tax year.
Item 12: enter the tax code (including an ‘X’ as the W1/M1 indicator, where appropriate) that the employer will apply from the date the employee started where it differs from the code used by the previous employer. (But, if the change to the tax code is simply as a result of applying P7X instructions, the new tax code should be entered alongside the old code shown at item 6.)
Item 13: enter the amount of tax that should have been paid in the previous employment, where this differs from the figure quoted by the previous employer, as determined by the new employer from the mandatory check of item 7.
Item 14: enter the job title used by the employer in respect of the employee’s duties.
Item 15: enter the employee’s private address.
Item 16: enter the employee’s gender, mandatory in every case from 6 April 2009.
Item 17: the employee’s actual date of birth, mandatory in every case from 6 April 2009.
Item 18: enter the employer’s name, address, and date of completion, declaring that a payroll record has been opened for the new employee.
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