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07 February 2012
'Leaver statement' plan abandoned
Plans to introduce a leaver statement instead of a P45 have been withdrawn after consultation about real time information (RTI), under which employers will tell HMRC about tax, National Insurance, etc. when or before the payments are made, instead of waiting until after the end of the tax year.
It had been intended to replace the P45 with a leaver statement but, following consultation and a workshop with employers and representative groups, HMRC have agreed to retain the P45 for all employees.
Under the new system, P45s will be given to the employee to take to their next employer, but should not be sent to HMRC. Starter and leaver information will be reported by employers as part of their normal RTI submissions.
