Casual Labour & P46

Casual Labour & P46

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If you have casual labour and get them to sign a P46 and tick box A and pay them so no tax and nic is due, - what else is there to do?
Is it simply a case of completing the P35?
Tony

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Euan's picture
By Euan MacLennan
21st Aug 2006 09:57

Do what it says on the form
...assuming you are using the new P46 which came into force on 6th April 2006.

If they have signed Box A to say that it is their first job since 6th April (and they have not been receiving Jobseeker's Allowance,etc.), you use a code of 503L on a cumulative basis. If they do not exceed the tax threshold for the year to date, you obviously do not deduct tax and you do not submit the P46 to the Revenue.

However, if they exceed the NI threshold in any payroll period (£97 a week or £420 a month), you have to deduct NI. Although it is not required to submit the P46 in this case, because it is a tax form not an NI one, you might wish to do so.

You only have to record the employee on the P35 at the end of the tax year if their pay has exceeded the NI lower earnings level of £84 in a week or £364 in a month or if they have actually had NI or tax deductions.

P.S. There is no such thing as casual labour as far as PAYE is concerned.

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