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STUDENTS AND P45

I HAVE A STUDENT ON A CLIENT PAYROLL OPERATING CODE NI PER JPOINING P45

SHE IS NOW LEAVING BUT THE SOFTWATE WILL NO ISSUE A P45 SAYING P45 CANNOT BE SUED WITH CODE NI

HAS ANYONE EXPERIENCED THIS OR KNOW A WAY TO DEAL WITH IT

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By richnrg
02nd Sep 2011 11:09

HMRC Employer Helpbook E13

http://www.hmrc.gov.uk/helpsheets/e13.pdf page  

page 25..

Do not fill in a form P45:

• when the employee is a student who, because of the P38(S)

procedure, has not had tax deducted. Instead complete the

‘Employer’s statement’ on form P38(S) or equivalent records

and keep this form for three years, or longer if you are asked

to do so. These forms must be made available for inspection

by us if required

 

 

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02nd Sep 2011 11:42

Agreed

The odd thing in your case is that you say that the joining form P45-3 showed a PAYE code of NI, so it would appear that someone else's payroll system did not comply with the regulations.  Did your client submit the joining form P45-3 to HMRC?  I assume that your client nevertheless satisfied himself that the joining employee qualified as a student working in the holidays and got her to complete a form P38(S).

I agree that you cannot issue a form P45 for a student leaving.  I would just add that as the P38(S) would not have been submitted in the first place, HMRC would not know that the student had been employed and hence, do not need to be informed that the student is no longer employed.  If code NI has been operated, no tax will have been deducted and so, neither the departing student nor the HMRC need the details on a P45.

However,at the end of the tax year, the student must be included in the form P35 and a form P14 must be submitted for the student.

Have a look at the online guidance.

 

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