Quality Standards
10.5 In-year forms sent online – common errors
When sending employee starting and leaving PAYE forms online, there are some points that you need to watch when sending them via the Internet. The forms must be submitted to us correctly to make sure that your employees’ records are accurately maintained and that you get the correct coding notices from us as quickly as possible.
Error |
Solution |
|---|---|
A second P45(1) is issued following a payment after the date of leaving |
If you have already sent us a P45(1) for an employee that has left
your employment and then you make another payment to them, you should
not complete a second P45(1). Instead, you should deduct tax using code
BR (non-cumulative) and record this on form P11. You then need to write
to the employee to tell them about the date of the payment, the gross
amount of the payment and the amount of tax and National Insurance you
have deducted from it. |
The tax code is shown as “NI” on the P45(1) or P45(3) |
Some employers use the informal tax code “NI” on their day-to-day payroll to signify that only National Insurance is to be deducted. “NI” is not a valid tax code and if you use it on a P45(1) or a P45(3) we will reject the form. |
The incorrect PAYE reference number for an old employer is quoted on a P45(3) |
When you receive a P45(3) from a new employee, if the old PAYE reference number is illegible then you need to use the default reference online. The office reference you should enter as “001” and the PAYE reference as “XXX” (that is, “001/XXX”). |
P45(3) or completed P46 not received. |
Some employees do not provide a P45(3) because their former employer has still not sent it. If you do not have the P45(3) and the employee does not sign a P46, then the tax code BR (cumulative) must be operated. See Paying someone for the first time – Book P49 for more. |
