Hello
Please can someone advise me
I have an employee who started mid year in the 2014-15 tax year. Her pay and tax from her starting P45 was entered in the cumulative pay from previous employment boxes and not in the P45 box. She then left and a P45 was raised. As she was month 1 basis the box for "this employment" showed this employment and the previous employment added together.
Her P11 summary therefore showed nothing in the pay from previous employment and but in the opening line in the 2nd employment followed by the monthly pays.
Her tax credits have been suspended due to this.
A reply to an email I sent to 12pay was a paste and copy guide and said I "could" rewind all the payroll, recalculate each month and re-submit an FPS for each one. Was not specifically in reply to this circumstance. This would be a lot of work. so I asked whether in this case i could just redo month 12 and change it, would i need to do an EYU etc to follow on but they are not replying and the support line continually goes onto voicemail. This is my 3rd day waiting for them to contact me.
I phoned HMRC today - was told that if I am happy that the figures are correct that HMRC have I just need to issue a correct P45. If they are not then I need to do an EYU as well. I said that I am happy that the monthly pay is correct and the overall tax is correct it is just the pay from the previous employment being in the wrong place. I said I didn't know whether this needed any adjustment for them. She told me to go back to 12pay.
So what are your thoughts please? I have run off a correct P45 by setting up a dummy company so I can send this off to the employee.
I have spoken to a payroll accountant and he is of the opinion that the tax office would have the correct year end figure for this employees total pay and all I need to do is re-issue theP45.
I have no dealings with tax credits but it appears the claimant gives the TC office the details from the P45.
I really would like some second opinions please,
Many thanks.
Replies (3)
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Month 1
Was this employee on Month 1 when she started with you ? If so, how did the previous employment figures get on to your payroll records ? You shouldn't even have known what they were. Is this the cause of your problem ? Have the P45 figures been entered as pay ?
Establishing what went wrong is the key to putting it right. As an interim, you ought to write a humble letter to HMRC (copy to the employee), explaining what your firm actually paid to this employee.
No P45
You shouldn't reissue a P45. Even if you were allowed to it isn't any use any more since it's last year's.
No, you shouldn't
You shouldn't reissue a P45. Even if you were allowed to it isn't any use any more since it's last year's.
But it is of use to the employee, apparently, as proof of earnings. Which is why I suggested a letter instead.