Employee takes a leave of absence
There are no special procedures to follow when an employee takes a leave of absence. The individual remains an employee of your business and stays on your payroll. So there is no need to submit a form P45 as would be the case if they were leaving permanently.
You should also continue to operatePAYE (Pay As You Earn) as normal, deducting tax and NICs from any payments that you make to the employee while they are on leave. This includes statutory pay received by employees on maternity, paternity or adoption leave, as well as Statutory Sick Pay.
Remember that at the end of the tax year you will also have to report any benefits - such as a company car or medical insurance - that you continue to provide to an employee while they're on a leave of absence.
