P46 Reporting requirements – April 2008

From 6 April 2008, employers are required to notify HMRC of a new starter when earnings reach or exceed the Lower Earnings Limit (LEL). We have been asked about the reporting requirements in respect of existing employees who are currently earning between the LEL and the earnings threshold.

In these cases we expect employers to maintain payroll records. Where payroll software requires an entry in the tax code field we suggest you use tax code 543L. In these particular circumstances we do not want you to submit a form P46. At April 2009, you must submit a P14 for 2008-09.