PAYE62026 - employment maintenance: employment changes: receipt of form P45(3) and P46 Statement B (Action Guide)


To deal with a form P45(3) and P46 Statement B, follow steps 1 - 30 below

Notes:


  1. If the form relates to an Agency worker and you find a live main source record relating to another Agency employment

  • Do not use Function MA – follow ‘Receipt of Form P46 - Agency Worker (Action Guide)’ at PAYE65031
  1. If the form shows a Basic Rate tax code has been operated do not use FunctionMA, follow ‘Receipt Of Form P46: No Statement Ticked, Multiple Statements Ticked And / Or Form Not Signed (Action Guide)’ at PAYE60025

  2. If the form you are dealing with is a form P46 Statement B, go straight to step 6

The guide is presented as follows


Initial actionSteps 1 - 4
Main source record not foundStep 5
Capture detailsSteps 6 - 8
No trace of record at previous employer reference shown on P45(3)Steps 9 - 12
Main source record found at new PAYE reference under same NINOSteps 13 - 15
Main source record at new PAYE reference under different NINOStep 16
Main source record at new PAYE reference under temporary reference numberStep 17
Multiple main source records exist for same taxpayerStep 18
Main source record found for different taxpayer with the same NINOStep 19
Employer is using correct cumulative code, pay and taxStep 20
Employer is not using correct cumulative code, pay and taxStep 21
Employer is using Week1 / Month1 codeSteps 22 - 27
Action if taxpayer is in clergySteps 28 - 30

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 the reference

  • Use Function EI to trace the employer reference
And then
  • Go to step 2
Note: For more information about using Function EI see ‘Trace Employer Record’ at PAYE102000 onwards
  1. If the NINO is shown on the form

  • Use Function MA to check if the main source record is held at the previous PAYE reference shown on the form P45(3)
  • If the main source record is found
  • Go to steps 6 – 8
  • Otherwise
  • Press [Ctrl] and [A] to abandon this function
And
  • Go to step 3
  1. If the NINO is missing or a main source record is not found at the previous PAYE reference shown on the P45(3)

  • 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
  • If a main source record is found note the NINO, employer reference and Management Unit number on the form
Note: For more information on using the refined search facility see ‘Finding A Taxpayer Record’ at PAYE102000 onwards
  1. If a main source record is found

  • At a different reference to the previous PAYE reference shown on theP45(3)
  • Go to steps 9 – 12
  • At the new PAYE reference under the same NINO
  • Go to steps 13 – 15
  • At the new PAYE reference under a different NINO
  • Go to steps 16
  • At the new PAYE reference under a temporary reference number
  • Go to step 17
  • With multiple main source records for the same taxpayer
  • Go to step 18
  • For a different taxpayer with the same NINO
  • Go to step 19

Main source record not found

  1. If a main source record is not found

  • Use Function MS (Class 2) to create a main source record
Where a NINO is not known
  • Use TBS Function FIND TAXPAYER to try and find a NINO
  • Otherwise
  • 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
  • Use Function MR to insert the previous employment details onto the taxpayer’s employment history record
And then
  • Follow steps 20 - 27

Capture details

  1. Use Function MA to transfer the record to your employer reference and capture the details on the form

  2. If a P204 record is created

  • Put the form on one side until the main source record is held in your Processing Office
And then
  • Follow steps 20 - 27
  1. If a P204 record is not created

  • Follow steps 20 - 27

No trace of record at previous employer reference shown on P45(3)

  1. Use Function MA to transfer the record to your employer reference and capture the details on the form

  2. If a P204 record is created

  • Put the form on one side, in accordance with your normal office practice, until the main source record is held in your Processing Office
And then
  • Go to step 11
  1. If a P204 record is not created or the main source record is now held in your Processing Office

  • Use Function MR to check that the previous PAYE details have been entered on the taxpayer’s employment history record
  1. If the previous PAYE details

  • Have been entered
  • Take no further action to update the taxpayer’s employment history
But
  • Follow steps 20 - 27
  • Have not been entered
  • Use Function MR to insert the details
And then
  • Follow steps 20 - 27

Main source record found at new PAYE reference under same NINO

  1. Use Function TD or MR to check the employment details

  • If they match the form you are capturing assume it is the same employment and take no further action in capturing the form and then follow steps 20 - 27
  • If the employment details do not match the form you are capturing check if the employment relates to a sub source
  1. If the employment does relate to a sub source

  • Use Function MS (Class 3) to create a new sub source employment record and follow the instructions given in ‘Receipt Of Form P46: No Statement Ticked, Multiple Statements Ticked And / Or Form Not Signed (Action Guide)’ at PAYE60025
  1. If the employment does not relate to a sub source

  • Telephone the employer to clarify the position
And then
  • Use either Function MA or Function MS as appropriate
  • Then follow steps 20 - 27

Main source record at new PAYE reference under different NINO

  1. Use Function TD or Function MR to check the employment details

  • If the employment details match the form you are capturing assume it is the same employment and take no further action to capture the form

Main source record at new PAYE reference under temporary reference number

  1. Use Function TD or Function MR to check the employment details

  • If the employment details match the form you are capturing assume it is the same employment and take no further action to capture the form, even if the form has a NINO, the temporary reference number will be replaced with a validated NINO by CVU

Multiple main source records exist for same taxpayer

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

  • If yours is the latest
  • Use Function MA to transfer the record to your employer reference from the office which holds most information
And then
  • Send E-Form – to the remaining office(s) asking them to TX their record(s) and forward the Taxpayer Full (TF) printout
  • If yours is not the latest
  • Forward your papers to the Processing Office responsible for the latest employment and advise them of the multiple records

Main source record found for different taxpayer with the same NINO

  1. Use Function MS (Class 2) to create a main source record using a temporary reference number allocated by the computer. For more information follow the instructions in ‘National Insurance Number Not Known (Action Guide)’ at PAYE60036

  • Use Function MR to insert the previous employment details onto the taxpayer’s employment history record
And then
  • Follow steps 20 - 27

Employer is using correct cumulative code, pay and tax

Note: K codes, IB and NT cases should be dealt with by an appropriate officer

  1. Use Function MR to see if there is a 10 week gap between the old and new employment

  • If there is a 10 week gap
  • Issue form P91 to cover the gap in employment. Where the gap starts in an earlier year the P91 should be issued for the full period. Make an E Note (P91 issued re gap from DD/MM/YY to DD/MM/YY)
  • Use Function MR to insert the issue of form P91
  • Destroy the form P45(3) / P46
  • If there is not a 10 week gap
  • Take no further action
  • Destroy the form P45(3) / P46

Employer is not using correct cumulative code, pay and tax

Note: K codes, IB and NT cases should be dealt with by an appropriate officer

  1. Use Function MR to see if there is a 10 week gap between the old and new employment

  • If there is a 10 week gap
  • Issue form P91 to cover the gap in employment. Where the gap starts in an earlier year the P91 should be issued for the full period. Make an E Note (P91 issued re gap from DD/MM/YY to DD/MM/YY)
  • Use Function MR to insert the issue of form P91
  • Destroy the form P45(3) / P46
  • If there is not a 10 week gap use Function CD to
  • Issue the correct code on a cumulative basis
  • Issue form P2 to the taxpayer
  • Issue form P6 to the employer showing previous pay and tax details
  • Destroy the form P45(3) / P46

Employer is using Week1 / Month1 code

Note: K codes, IB and NT cases should be dealt with by an appropriate officer

  1. Use Function MR to see if there is a 10 week gap between the old and new employment

  • If there is a 10 week gap
  • Issue form P91 to cover the gap in employment. Where the gap starts in an earlier year the P91 should be issued for the full period. Make an E Note (P91 issued re gap from DD/MM/YY to DD/MM/YY)
And then
  • Go to step 24- 25
  1. If there is not a 10 week gap

  • If you have complete employment history (ignoring gaps of less than 10 consecutive weeks) from 6 April go to steps 26- 27
  • If you do not have complete employment history (ignoring gaps of less than 10 consecutive weeks) from 6 April go to steps go to step 24 – 25
  1. If there are incomplete P45(1) details

  • Do not send E-Form for preceding Processing Offices’ outstanding P45 part 1 details unless the customer queries their current tax code
  • If the immediate preceding Processing Office held a Jobseekers Allowance (JSA) record estimate the amount of JSA received using the P242 chart
  1. Use Function MR to update the taxpayer’s record with any estimated JSA and / or the issue of form P91

And then

Destroy the form P45(3) / P46
  1. If you are satisfied you have all the information needed to restore cumulation

  • Use Function TT to check if a cumulative code can be restored
  1. If a cumulative code

  • Can be restored use Function CD to
  • Issue the correct code on a cumulative basis
  • Issue form P2 to the taxpayer
  • Issue form P6 to the employer showing previous pay and tax details
  • Destroy the form P45(3) / P46
  • Cannot be restored
  • Leave the code on a Week1 / Month1 basis
  • Destroy the form P45(3) / P46

Action if taxpayer is in clergy

  1. If the taxpayer is in the Church of England or Wales and is not retired

  • Use Function MA to capture the details from the form
  1. If a P204 record is created

  • Put the form on one side, in accordance with your normal office practice, until the main source record is held in your Processing Office
And then
  • Go to step 30
  1. If a P204 record is not created or the main source record is now held in your Processing Office use Function TA to set the RTNCLERGY signal if

  • The clergyman is not retired
Or
  • Is retired and, in addition to a pension, receives untaxed income from part time duties for the church

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