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Posted Thu, 27 Jul 2023 08:49:44 GMT by John Clark
Hi, One of our employees has left the company, received the final payments and p45 (and on the FPS, leaving date properly applied). There is now a fair chance that he will be returning to the company for a month or so. Should we treat him as a new employee (and issue a p45 when he does leave) or treat him as an old employee and all payments as an after leaving cost? When he left, he was also on an M1 tax code. - I can use the calculator to get his tax code if he's being treated as a new employee, but assume it's the usual code if it's after leaver
Posted Tue, 01 Aug 2023 11:41:55 GMT by HMRC Admin 10
If your employee is returning to work, then you will use the P45 to add him on to your payroll software again.
You will need to process any payments made and then if he leaves the employment, you should follow normal procedures and generate a new P45.
If he is not returning to work, and you are simply paying final wages holiday pay etc, then you do not need to reinstate him.
Any payments made, will be treated as payments after leaving and are reported as such via your payroll software.
You can find guidance on payments after leaving here:
What to do when an employee leaves
Should you need any further assistance, please contact the Employer Helpline on 0300 200 3200.

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