Paye

[AndrewEardley]

Hi all

I am sure someone will know the answer to this, given the raft of knowledge that floats around on the forums.

I am a new employer, registered with HMRC etc. I took my first employee on about a month ago, registered it on my payroll software and process her salary through RTI as I should be doing.

She didn't have her P45 from her previous employer so completed a declaration, showing this was her only job, and so I set her up on a 944L W1 tax code (as per HMRC guidelines)

HMRC have since sent me an amended tax code for her (438L W1), which I have been using, however they haven't yet sent me any previous employment figures.

She has now given me her P45 from her previous employer so I have the figures that I need. But how do I process this?

Do I use the previous figures and take her off W1, leaving the tax code as HMRC told me, or do I leave her on W1 until HMRC tell me otherwise?

Thanks

 

[Tom McClelland]

Hi all

I am sure someone will know the answer to this, given the raft of knowledge that floats around on the forums.

I am a new employer, registered with HMRC etc. I took my first employee on about a month ago, registered it on my payroll software and process her salary through RTI as I should be doing.

She didn't have her P45 from her previous employer so completed a declaration, showing this was her only job, and so I set her up on a 944L W1 tax code (as per HMRC guidelines)

HMRC have since sent me an amended tax code for her (438L W1), which I have been using, however they haven't yet sent me any previous employment figures.

She has now given me her P45 from her previous employer so I have the figures that I need. But how do I process this?

Do I use the previous figures and take her off W1, leaving the tax code as HMRC told me, or do I leave her on W1 until HMRC tell me otherwise?

Thanks

As HMRC has already sent you a P6 for this employment in response to your P46 and you've been processing pay I'd not process the P45. The employee can send the P45 to their tax office and request a revised P6 for you if necessary. The 438L/W1 sounds like either (a) a split tax code or (b) complications in the employee's affairs that HMRC may want to take account of in issuing you with a tax code.

EDIT: I've just checked, and in the specific case where you've received a P6 from HMRC before a late P45 from an employee you should not use the information on the P45.

 

[AndrewEardley]

So basically, I don't do anything and keep her on a W1 basis?

Assumingly at some point HMRC would update the code and provide me with the previous employment information so that I can tax on a cumulative basis?

 

[Tom McClelland]

So basically, I don't do anything and keep her on a W1 basis?

Assumingly at some point HMRC would update the code and provide me with the previous employment information so that I can tax on a cumulative basis?

To make that happen the employee may need to contact their tax office with their P45 and request it.