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Issue 54 of HMRC’s Employer Bulletin is summarised below.
P45s
The Revenue’s understanding used to be that employers could not provide parts 1A, 2 and 3 of form P45 to a departing employee electronically.
The department has now received legal advice confirming that the relevant PAYE regulation governs the electronic transmission of information to and from HMRC, not between the employer and employee.
Issue 54 of HMRC’s Employer Bulletin is summarised below.
P45s
The Revenue’s understanding used to be that employers could not provide parts 1A, 2 and 3 of form P45 to a departing employee electronically.
The department has now received legal advice confirming that the relevant PAYE regulation governs the electronic transmission of information to and from HMRC, not between the employer and employee.
Employers must, however, ensure that they provide P45 information to the employee in the correct form or type of document.
Starter declarations
HMRC have developed an online tool to help employers and payroll providers obtain a new employee’s tax code and starter declaration code.
If a starter declaration for the new employee’s first full payment submission (FPS) is unavailable, the employer should use starter declaration code C with PAYE tax code 0TX (week/month one basis).
For the next FPS, as long as he has not received a P45 from the employee or P6 from the Revenue, he should update the payroll records based on the starter declaration.
