HMRC's website http://www.hmrc.gov.uk/employers/p45-employee-leaves.htm has a faq:
Q. Do I need to issue a P45 to every employee who leaves?
A. You must complete a P45 for any employee who is leaving your employment and for whom you have completed a P11 deductions working sheet in the current tax year. You have a legal obligation to do this. The exception to this is when you have only used tax code 'NI' (used when a student is signing a P38(s) declaration).
I take that to mean if you have an employee (e.g. casual) who has not worked in the current tax year, then there is no need to issue them with a P45.
My payroll software does not allow 'nil' P45s to be filed online, so up to now I've been manually entering them on HMRC's website (!), which now seems unncessary.
My question is what do other people do in this scenario? Surely it's better if HMRC know the person is no longer on your books, so they don't send any more tax codes etc. The employer helpline says they will pick this up when the employee starts elsewhere.
Also, the point at which the employee is 'off the books' in the abscence of a leaver P45 is a bit vague - presumably employment law would apply, and the employer best send the (casual) employee a letter.
- Vat treatment of charity business income 62 4
- Donations (to a school!) 418 11
- Company Accounts 63 1
- Vat on Royalites 76 1
- 100% Xero practice 2,106 34
- Any Scottish members out there? 9,153 341
- where has the honest passion to help gone..??? 830 17
- Umbrella Company 131 2
- Outsourcing iXBRL Tagging 422 24
- Payroll YTD info on Operaii 74 1
- Treatment of goodwill in Consolidation 141 5
- Mortgage deposit Gift 422 18
- Profitable company wanting to buy an office 160 3
- property rental income split 254 3
- Shadow director or alternative? 466 4
- Does my client qualify for CGT Loss? 125 1
- EIS/SEIS capital gains exemption 93 2
- About to buy a block of fees. Any advice? 1,266 5
- Use of home for storage 326 6
- VAT registration for self employed dentist??? 324 10
- Raiders of the Lost Tax File 1,185
- Chartered Accountant in County Down N.Ireland 403
- IPP (International Pension Plan) income 314
- National Insurance 308
- valuation of intangible asset FRS10 and FRS20 260
- Cass 5 FCA Client Money Software recomendation 233
- Unnecessary S9A Enquiries 232
- Non Resident 218
- Franchise income and costs 202
- A question for the payroll-only bureau's out there 147