PAYE60071 - employment maintenance: employment starters: employee withholds P45 from new employer (Action Guide)


To deal with an employee who withholds the form P45 (2) and (3) from the employer, follow steps 1 - 8 below. The guide is presented as follows

Action by old Processing OfficeSteps 1 - 4
Action by new Processing Office if pay and tax details are to be withheldSteps 5 - 7
Action by new Processing Office where Code suffix to be withheldStep 8


For details of how to access any of the COP functions use the [Index of Functions] button on the left of the screen.

Action by old Processing Office

  1. If the taxpayer tells you that form P45 will be withheld, before the new employment starts
  • Ask for the P45 Parts (2) and (3)
  1. Use Function NO to make an Essential Note (E Note) that the
  • P45 will be withheld from the new employer

And the

  • New Processing Office should issue the code on Week 1 / Month 1 basis
  1. On receipt of the P45 Parts (2) and (3)
  • Use Function TA to set the BF signal
  • Put the P45 Parts (2) and (3) in the BF box
  1. Send the papers when you get a request from the new Processing Office

Action by new Processing Office if pay and tax details are to be withheld

  1. When form P46 is received from the new employer
  • Use Function MA to capture the details from the form P46
  1. The computer will produce a printout telling you that the BF signal is set
  • Request the BF papers from the old Processing Office
  1. Use Function CD to
  • Issue form P2 to the taxpayer
  • Issue form P6 to the employer showing the code on a Week 1 or Month 1 basis and no previous pay and tax details

Action by new Processing Office where Code suffix to be withheld

  1. Use Function CD to
  • Issue form P2 to the taxpayer
  • Issue form P6 to the employer showing the code suffix as T
  • Include previous pay and tax details on the P6