I wonder if this senario is relatively common and someone familiar with HMRC's Basic PAYE Tools (BPT) knows the right solution...
I'm hoping to help someone who has made an error whilst using BPT to submit their employee payroll for 2020-21. The submissions were fine for tax period 1-7, then an employee was let go and the relevant leaver data submitted to HMRC and P45 issued.
But when the furlough scheme was extended past October 2020, the employer re-hired them immediately (i.e. left on 31st October and re-hired on 1st November). Not knowing what to do they set up a new employee record, which somehow (I haven't thoroughly examined the data yet) has left the employee with tax deductions in tax periods 8-11. They weren't paid enough each month to warrant any tax deductions... and the employer did not even realise the mistake until HMRC sent them a debt chasing notice for the unpaid tax.
They could re-submit the FPS for 8-11 using the old file as a correction, but I'm wondering as the leaver data for this has already been submitted to HMRC whether that will cause further problems?