TUPE Transfer & P45

TUPE Transfer & P45

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Hi all

Our client has just taken on about 30 new employees via a TUPE agreement. All of them are coming over from the NHS.

They all need to be paid next week but NHS payroll will not provide P45's until end of the month.

As they are TUPE do I need to deal with them as normal and obtain starter declarations from them all? They will all, apart from a few, either over or under pay tax this month as a result which will obviously rectify itself next month once we have the P45's.

Does anyone know what the procedures are please?

Many thanks

 EDITED TO ADD: We have all their year to date figures just no P45's

Replies (5)

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Euan's picture
By Euan MacLennan
16th Oct 2014 13:37

What has TUPE got to do with it?

If these new employees will receive P45s in a couple of weeks, but you don't have the P45s before you run their first payroll, you have no option but to treat them as ticking Box B on a Starter Checklist (previously employed since 5 April 2014, but this is now my only job) and hence, apply a PAYE code of 1000L Week 1.  I doubt it is necessary to get them actually to complete a Starter Checklist, but do not even think of entering the YTD totals and existing PAYE codes until you have received the P45s.

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By Kazmc
16th Oct 2014 13:46

@Euan

I completely trust your advice Euan...... however, I have just spoken with Sage helpline and they categorically advised me to do just that! Input the YTD figs & tax codes from the previous copy payslips we have. They said we do not have to wait to get the P45 certs??

 

 

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Euan's picture
By Euan MacLennan
16th Oct 2014 13:51

I suspect that ...

... you can guess, if you do not already know, my opinion of the advice given by the Sage helpline.

Perhaps, you could call the HMRC Employer's helpline and find out their view.

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By SThornton
16th Oct 2014 15:55

Ignore the sage helpline. It appears they want you to put information into your system that will be from a period before their last payment with their previous employer.

 

Correct me if I'm wrong but from what you have said, it appears they will be paid by their old employer and new employer in the same month and therefore will use their free pay with their old employer. If you use box B, they will get free pay with both employers in the same month and will get whacked for tax in the following month when the P45 is entered. I would suggest putting them on 0T M1 for the first payment and overwriting that with the P45 after. In theory, anything that is over deducted by the new employer will be corrected when the P45 is entered.

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By xtraman88
22nd Oct 2014 17:55

TUPE

I am not an accountant but it is worrying that your client has no procedure set out under the New TUPE regulations Jan 2014 i am assuming it was a service provision change from public to private sector there are clearly defined regulations on pay and employee terms my best advice is speak to ACAS as they no the rules inside out 

http://www.acas.org.uk/media/pdf/d/r/Handling-TUPE-Transfers-The-Acas-Gu...

Are the staff staying in the NHS pension scheme? if not whats in place for them?

It goes a long way beyond the first pay run if it is not in place at the start it will cause you a massive headache.

 

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