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Any update on this yet?
Agent Update 96 (May 2022) tells us that if you have a new starter without a P45 they need to complete a new starter form. It goes on to say that if you then receive a P45 after the first FPS has been submitted, you do not need to update the previous pay, tax or tax code on the payroll software. Only update student loan details (if applicable).
But the new starter checklist, HMRC 09/22, seems to contradict the above information by saying that 'if the employee gives you their P45 after the first FPS submission, use the tax code shown in parts 2 and 3 of the P45.' It doesn't mention using the taxable pay and tax figures so I'm assuming we don't use those???
So, which one is correct?
We offer a critical illness scheme to employees, which runs in line with our financial year, 01 June to 31 May. The scheme provider does not cater for the addition of new starters or leavers mid year, instead deeming them to be covered until being added at the start of the new financial year. We are not refunded for leavers.
For the purposes of the P11D's, although we are not being charged for new starters from their start date, but they have the benefit of the scheme, when they are added to the scheme from the next policy renewal, should we pro-rate their premium to include the number of days from a) when they first started or b) from the date they pass their probation period or c) from the 01 June?