Filing in-year PAYE forms online

13.4 Payments made to an employee after date of leaving

When an additional payment is made, the correct procedure is that tax should be deducted from the additional payment using code BR Week 1/Month 1 basis and a letter should be sent to the employee giving the details outlined in CWG2 – Employer Further Guide to PAYE and NICs. You must record the additional pay and tax details on the P14 at the year end. It is important that you DO NOT give the employee a second P45.

It is sometimes necessary for an employer to make a payment to an employee after they have been given their P45 parts 1a-3. Some employers have given the employee a second P45 showing code BR together with the additional pay and tax details. If this is given to a new employer it may result in excessive tax deductions.