PAYE61046 - employment maintenance: employment leavers: receipt of form P45(1) (Action Guide)


To deal with a form P45(1), follow steps 1 - 31 below. The guide is presented as follows

Initial actionSteps 1 - 20
Capture detailsSteps 21 - 24
Sub source deletion printoutsStep 25
Format 4 Tax Table discrepancySteps 26 - 31


Note: When viewing a taxpayer record within your office but on a different Management Unit you will need to use Function BG or Function MA if you do not have Privileged User status.

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

Initial action

  1. If the employer reference is missing and you do not know it

  • Use Function EI to find it

Note: For more information about using Function EI see ‘Trace Employer Record’ at PAYE22000 onwards

  1. If a NINO is shown on the form

  • Use Function ML. If a taxpayer record is found at your employer reference
  • Go to step 21

Otherwise

  • Go to step 3
  1. Use TBS Function FIND TAXPAYER first then COP Function TI to check whether a taxpayer record exists using NINO, name and / or address to search

Note: For more information about using the refined search facility see ‘Finding A Taxpayer Record’ at PAYE102000 onwards

  • If a record is found note the NINO, employer reference and Management Unit number on the form
  1. If a main source record is found and the code on the P45(1) is not BR

  • Follow steps 6 – 7

Otherwise

  • Go to step 17
  1. If a main source record is not found and the code on the P45(1) is not BR

  • Go to step 19

Otherwise

  • Go to step 18
  1. If a main source record is found

  • At the same employer reference under a different NINO
  • Go to step 8
  • At the same employer reference under a temporary reference number
  • Go to step 9
  • With multiple main source records for the same taxpayer
  • Go to step 10
  • Elsewhere, or the period of employment shown on the traced record does not match the form you are dealing with
  • Go to step 11
  • At the same employer reference
  • Go to step 21
  1. For a different taxpayer with the same NINO

  • Use Function MS (Class 2) to create a main source record using a temporary reference number allocated by the computer

And then
Go to step 21

  1. Check the employment details. If they match the form you are capturing assume it is the same employment

  • If the NINO is on the existing record
  • Go to step 21
  • If a COP temporary reference number is on the record, the temporary reference number will be replaced with a validated NINO by CVU
  1. Check the employment details. If they match the form you are capturing assume it is the same employment

  • Go to step 21
  1. Use Function BG to view each duplicate main source record and establish if your employment is the latest

  • If yours is the latest main source and the record(s) shows a date of leaving earlier than the date of leaving on the P45(1)
  • Use Function MA to transfer the record to your employer reference from the office which holds most information

And then

  • Use E-Form to request the remaining office(s) to TX their record(s) and forward the Taxpayer Full printout

And then

  • Go to step 21
  • If yours is not the latest main source and / or no date of leaving is shown on the employment record

Or

  • The start date on the employment record is after the date of leaving shown on the P45(1)
  • Use E-Form to send the P45(1) details on to the latest office giving details of the duplicate record(s)
  • Destroy the P45(1) form
  1. Use Function TD or BG to check if yours is the latest main source

  2. If yours is not the latest main source and no date of leaving is shown on the employment record

Or

The start date on the employment record is after the date of leaving shown on the P45(1)

  • Check to see if the P45(1) details are entered in Employment History
  • If the P45(1) details are entered and are correct, take no further action
  • Destroy the P45(1) form
  1. If yours is the latest main source but the main record is for a live period of JSA or Agency employment and your P45(1) is for a period of JSA or Agency employment

  • Use E-form to send details onto the latest office
  • Destroy the P45(1) form
  1. If yours is the latest main source and the record shows a date of leaving earlier than the date of leaving on the P45(1)

  • Use Function MA and follow the instructions given in ‘Receipt Of Form P45(3) And P46 Statement B (Action Guide)’ at PAYE62026

And then

  • Go to step 21
  1. If yours is the latest main source and no date of leaving is on the earlier record

  • Use Function MA and follow the instructions given in 'Receipt Of Form P45(3) And P46 Statement B (Action Guide)' at PAYE62026
  1. If the P45(1) details are incorrect or missing, and

  • The taxpayer record is held in your office
  • Use Function MR to insert the P45(1) details

Note: For more information about reviewing Employment History see ‘Other Information Received’ at PAYE64018

  • Destroy the P45(1) form
  • The taxpayer record is held in another office
  • Use E-Form to send the P45(1) details to the latest office
  • Destroy the P45(1) form
  1. If a main source record can be found and the code on the P45(1) is BR

  • Use E-Form to send details onto the latest office
  • Destroy the P45(1) form

Note: For the purpose of dealing with this particular type of No Trace P45 the ‘latest office’ includes leaver records. The latest office must not ask the other office to request the record using Function MA in these circumstances

  1. If a main source record cannot be found and the code on the P45(1) is BR

  • Take no further action
  • File the form in strict alphabetical order in the No Trace P45 range
  1. If a main source record cannot be found, the code on the P45(1) is other than BR, the pay is less than £100 and tax has not been deducted

  • Take no further action
  • File the form in strict alphabetical order in the No Trace range
  1. If a main source record cannot be found, the code on the P45(1) is other than BR and tax has been deducted or the pay is £100 or more

  • Use Function MS (Class 2) to create a new main source record

Note: Where a NINO is not known enter ‘P’ in the NINO / Register No field to have a temporary reference number allocated by the computer. For more information see ‘National Insurance Number Not Known’ at PAYE60035

  • Enter a start date as the day before the date of leaving shown on the P45(1)
  • Do not issue forms P44 or P91

And then

  • Go to step 21

Capture details

  1. Use Function ML to capture the P45(1) details

  2. If the P45(1) is marked ‘Pensioner’

  • Pass the form to the appropriate officer with a note that this is a pensioner and that Function ML has been done
  1. If the P45(1) is marked ’Deceased’

  • Check that all four parts of the form are the same. Refer any discrepancies to the appropriate officer
  • Pass parts 1A, 2 and 3 of the form to the appropriate officer with a note that
  • This is a deceased case
  • Function ML has been done
  • TBS Function AMEND TAXPAYER DESIGNATORY DETAILS has been updated

And

  • The MCOTP signal has been set using Function TA
  1. Otherwise

  • Destroy the P45(1) form

Sub source deletion printouts

  1. If you get a P45(1) which relates to a sub source employment after using Function ML a sub source deletion printout is produced

  • Send this copy to the responsible processing office
  • On receipt of the copy in the responsible processing office, the taxpayer’s record should be reviewed in conjunction with the sub source deletion printout and where there is likely to be an overall underpayment or overpayment the POTA signal must be set and an Enote made of the sub source pay and tax

Otherwise

  • Retain the form in accordance with your normal office practise

Format 4 Tax Table discrepancy

  1. If a Tax Table discrepancy is shown on Format 4 of Function ML

  • Check if the code on the form P45 is a K code
  1. If the code shown on the form P45 is a K code and the discrepancy is an underpayment

  • Take no further action
  1. If the code shown on the form P45 is a K code and the discrepancy is an overpayment

  • Pass it to the appropriate officer to deal with
  1. For all other cases

  • Check if the correct details have been entered from the form P45(1)
  1. If the correct details have been entered from the form P45(1)

  • Make a note of the discrepancy
  • Enter ‘Y’ in the Are P45 figures entered correctly? field
  • Press [Enter] to complete the transaction

And then

  • Telephone the employer immediately to establish the reason for the discrepancy
  • Use Function ML to update the taxpayer’s record with any amended details
  • Use Function NO to insert an Essential Note recording the original P45(1) details and stating the reason for the discrepancy if necessary
  • Retain the form in accordance with your normal office practice
  1. If the correct details have not been entered from the form P45(1)

  • Enter ‘N’ in the Are P45 figures entered correctly? field
  • Press [Enter] to return to Format 1 or 2 of Function ML
  • Enter the correct P45(1) details

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