Suspected Incorrect P45

Suspected Incorrect P45

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A new employee has handed in a P45 which doesn't have a W1/M1 tag, but also doesn't have any figures in the to date boxes.  Surely this is clearly wrong.

Two weekly pay runs have been processed already (on a W1/M1 code) and we haven't received a P6 from the Revenue yet.

When I enter the P45 details onto our payroll system it is going to rebate them any tax paid to date for this week, and will not tax them in any further weeks as their weekly wage to the end of the tax year wont go over the PA.

Who's responsibility is it to correct this mistake?  Should we enter the P45 details as it is printed and wait for the Revenue to issue a P6 with the correct YTD figures?

I will advise the employee that he is going to get a tax rebate this week and will not pay any tax, until it gets corrected - Should I also ask him to get his old employer to issue a correct P45?

Replies (4)

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By Marion Hayes
23rd Nov 2015 12:50

Follow the regs

I can think of a couple of circumstances where there would be no year to date figures.

If the employee had been on an Agency list, or zero hours contract, and hadn't earned anything yet the P45 would look like that wouldn't it.

You follow the regs, assuming the refund is manageable for you, and leave it to HMRC to make ay necessary corrections.

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Replying to Southwestbeancounter:
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By scorbett
23rd Nov 2015 13:01

Thanks Marion, we are doing just as you suggested, I just want to make sure that it isn't our responsibility to let HMRC know.

In relation to zero hours contract yet, if you hadn't actually paid some one, wouldn't you need to put zeros in the boxes rather than leaving them blank?

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By Marion Hayes
23rd Nov 2015 12:58

Yes - I would

As presumably you would have shown them on FPS as a starter/employee and received coding instructions which need to carry on 

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Replying to taxwizard:
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By scorbett
23rd Nov 2015 13:03

Corrected

Hi Marion,

After thinking about your original post I have just amended my reply......

Sorry

 

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