Payroll developments : New forms P45 soon to be mandatory

A new style form P45 was issued in October 2008, and HMRC has permitted “dual running” in the period October 2008 to 5 April 2009. However, from the start of the new tax year, only the new A4 size P45 will be valid, so employers and advisers will need to be ready to destroy their stock of old forms.

2009 also sees the start of mandatory in year online notification for large and medium employers, that is those with 50 or more staff. These employers must notify HMRC of joiners and leavers with online versions of forms P45 and P46 from April.