P45 from Job Seekers Allowance

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We have an employee that had a P45 from a previous role, then received two months worth of JSA (Job seekers allowance), and then joined us as an employee.

We were given the P45 from the previous role, but the P45 from the JSA hasn't yet been received and given to us, I think the P45 we've been given is therefore effectively voided as there's been pay after it was issued.

From reading the guidance, I believe the employee should be set up as a new starter using employee statement B on new starter checklist, and have a 1257L tax code at wk 1 mth 1 ticked, however another accountant says we should use the P45 from the previous role.. I disagree with them..!

This is the HMRC starter checklist "Since 6 April I have had another job but I do not have a P45. And/or since the 6 April I have received payments from any of the following: • Jobseeker’s Allowance • Employment and Support Allowance • Incapacity Benefit"

Replies (4)

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By Paul Crowley
19th Jun 2024 15:27

Employee should be capable of getting the p45 from prior employer
If no hope then I would Month 1 him.

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Replying to Paul Crowley:
By SteveHa
19th Jun 2024 15:58

You've got the wrong end of the stick. Employee has P45 from previous employer. It's P45 from DSS (after that employment) in respect of JSA that (s)he's missing.

I agree with the O/P. New starter and month 1. HMRC should sort it out and issue a tax code to you.

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Replying to SteveHa:
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By FactChecker
19th Jun 2024 17:17

Indeed (the 'another accountant' is simply wrong)!

Following the Starter Checklist 'rules is not only correct, but least likely to end up causing confusion within HMRC's records. And it couldn't be much clearer:

"Statement B:
Since 6 April I have had another job but I do not have a P45.
And/or since the 6 April I have received payments from any of the following:
• Jobseeker’s Allowance
• Employment and Support Allowance
• Incapacity Benefit"

Instructions to ER: "Use current personal allowance on a Week 1/Month 1 basis".

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By SXGuy
19th Jun 2024 20:12

I'm afraid your other accountant is wrong for the simple fact, forgetting everything else, you all know there's been JSA since the last employment therefore you all know the old P45 had been superseeded.

So based on knowing that the employee has no current p45, B is the option to pick.

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