Common errors to avoid when filing forms P45 and P46

Simple errors can lead to your PAYE forms being rejected when you file them online to HM Revenue & Customs (HMRC). Common mistakes include login problems, typing mistakes and entering information in an incorrect format. This guide lists the errors that cause most forms P45 and P46 to be rejected, and explains how to avoid making them.

On this page:

PAYE Online registration and login

Allow time to activate PAYE Online

In order to file online, you must be registered with HMRC's 'PAYE Online for employers' service. The registration process only takes minutes, but you won't be able file online until you have 'activated' the service using an Activation Code that HMRC sends you by post. This can take up to a week to arrive - so don't leave registration and activation until the last minute.

User IDs, passwords and Activation Codes

Common problems during the login process include:

  • confusing your user ID (which you make a note of when you register for the online service) with your password (which you choose) or your Activation Code (which you receive in the post, separately from your user ID)
  • losing or forgetting your password, user ID or Activation Code
  • mixing up similar characters - for example using the letter 'O' instead of '0' (zero), 'S' instead of '5' or 'Z' instead of '2'

Registering for PAYE Online and how to get new login details

PAYE reference

Make sure that you use a PAYE reference that's valid - don't use an old one that's been cancelled. (Your PAYE reference is valid even if you ceased trading during the past year).

Enter the PAYE reference in the correct way - you need to submit it in two separate fields:

  • in the first field, put the three digit PAYE Office number
  • in the second field, put your employer PAYE reference (you can find it on your payment booklet) - with no spaces or hyphens in front of it and don't repeat the three digit office number in this field

An example of a PAYE reference in the correct format is: 913/WZ51258.

IR Mark error message

IR Mark is a feature of commercial payroll software packages that generates a receipt when you submit your PAYE forms.

It's been a mandatory feature in all payroll software since April 2009.

Some commercial software packages have had problems with the feature, so if you get an error message including the term 'IR Mark' you should contact your software provider.

If you use the free 'Online Return and Forms - PAYE' filing service on HMRC's website, you won't be affected by this.

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Filing the right forms

You can only use the PAYE online service to file your PAYE forms. To file any other HMRC forms online, such as VAT or Self Assessment returns, you'll need to enrol and log in to the relevant online services separately. Do this in the online services homepage - see the link below.

Make sure also that you only file each form once - don't submit the same form both online and on paper.

Go to the Online Services home page

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Entering employee information

Taking care to make sure you send HMRC the correct information about your employees will save you time by reducing the number of employee queries you get as well as helping to make sure your employees pay the correct tax and National Insurance contributions.

Over 80 per cent of data quality problems are caused because the wrong information is held about an employee's name, date of birth or national insurance number.

First name

Only enter the following characters in the field for your employee's first name:

  • A-Z letters (upper or lower case)
  • hyphens (-)
  • apostrophes (')

The first character of this field must be an A-Z letter - not a space, comma, full stop, hyphen or apostrophe.

Always provide the full name and not just their initials. Make sure that you have spelled the name correctly.

Surname

Don't include extra information in this field, such as 'staff' or 'temp'.

National Insurance number

The correct format for an employee's National Insurance number is two letters followed by six numbers followed by one optional letter (this final letter is always A, B, C or D). An example is QQ123456A - though Q will never be used in a real National Insurance number.

The first two letters must be from of a set number of valid prefixes. These never include the letters D, F, I, Q, U or V. Use the table at the end of this guide to check a National Insurance number includes a valid prefix.

If you don't know your employee's National Insurance number don't make up a number. Instead:

  • leave this field blank, but make sure you complete the fields for date of birth and gender
  • ask HMRC to find an employee's National Insurance number by sending in a completed form CA6855

Download form CA6855 Employees National Insurance number trace (PDF 590K)

Tax codes

Take care with tax codes 0T and D0 - both contain a zero, not the letter 'O'.

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Common errors to avoid on form P45

Form P45 (all parts) - employee's address

Where the address field is completed, you have to include the second line of your employee's address. This information isn't needed for other PAYE forms like the P14, so it might be missing from your payroll system or it might contain invalid characters. Please only complete with a full and valid address do not complete the address with 'Not known' for example.

Form P45 (Part 1 - employee leaving) - paying an employee after they've left

Don't file a second form P45 if you pay an employee after they've left. You can find out more in our guide on paying an employee after they have left or retired.

Read about paying an employee after they have left or retired

Form P45 (Part 1 - employee leaving) - employee's date of leaving

The employee's leaving date must be in either:

  • the current tax year
  • one of the previous six tax years

Form P45 (Part 1 - employee leaving) - no payments made to employee

If you need to submit a nil P45(1) please make sure that 0.00 is entered in each box.

Form P45 (Part 1 - employee leaving) - your employee's tax code is cumulative

If you're operating a cumulative tax code you must provide:

  • the period (week or month) number - valid week numbers are 01-54 and 56; valid month numbers are 01-12
  • the employee's total pay to date for the tax year, including from any previous employments
  • their total tax to date for the tax year, including from any previous employments

Form P45 (Part 1 - employee leaving) - your employee's tax code is week 1 or month 1

Most commercial payroll software packages let you click a button to confirm that an employee is on a week 1 or month 1 code. But if your software expects a text entry instead, you should enter an 'X' to confirm that an employee is on a week 1 or month 1 code.

For employees on week 1 or month 1 codes, only provide total pay and total tax in this employment on form P45 - you must not include any pay or tax from previous employments.

Form P45 (Part 1 - employee leaving) - total pay and tax

The amount of pay you enter must be equal to or more than the amount of tax you enter.

Form P45 (Part 3 - new employee) - employer PAYE references

You need to make sure that you enter the 'Previous PAYE Reference' and the 'New PAYE Reference' in the correct format. You need to enter it in two fields:

  • in the first field, put the three digit PAYE Office number
  • in the second field, put your employer PAYE reference (you can find it on your payslip booklet) - with no spaces or hyphens in front of it and don't repeat the three digit office number in this field

An example of a PAYE reference in the correct format is: 913/WZ51258

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Common errors to avoid on form P46

Form P46 - employee's address

Where the address field is completed you have to include the second line of your employee's address. This information isn't needed for other PAYE forms like the P14, so it might be missing from your payroll system or it might contain invalid characters. Please only complete with a full and valid address do not complete the address with 'Not known' for example.

Characters to avoid

You can't use the quotation mark character (") when you complete form P46 online.

Boxes A, B and C

Your employee must have put an 'X' in one of boxes A, B or C to tell HMRC about their present circumstances.

Read about PAYE online filing for employers

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List of valid National Insurance number prefixes

It's important to get your employees' National Insurance numbers right when filing PAYE forms online because HMRC will reject forms containing invalid numbers.

The table below lists all the valid National Insurance prefixes - the two letters at the beginning of an employee's National Insurance number. If the National Insurance number you have for an employee contains a prefix not listed in this table, then you should use form CA6855 to find out the correct National Insurance number to use for the employee.

This is a simple sample table
First letter Valid National Insurance number prefixes
A AA, AB, AE, AH, AK, AL, AM, AP, AR, AS, AT, AW, AX, AY, AZ
B BA, BB, BE, BH, BK, BL, BM, BT
C CA, CB, CE, CH, CK, CL, CR
E EA, EB, EE, EH, EK, EL, EM, EP, ER, ES, ET, EW, EX, EY, EZ
G GY
H HA, HB, HE, HH, HK, HL, HM, HP, HR, HS, HT, HW, HX, HY, HZ
J JA, JB, JC, JE, JG, JH, JJ, JK, JL, JM, JN, JP, JR, JS, JT, JW, JX, JY, JZ
K KA, KB, KE, KH, KK, KL, KM, KP, KR, KS, KT, KW, KX, KY, KZ
L LA, LB, LE, LH, LK, LL, LM, LP, LR, LS, LT, LW, LX, LY, LZ
M MA, MW, MX
N NA, NB, NE, NH, NL, NM, NP, NR, NS, NW, NX, NY, NZ
O OA, OB, OE, OH, OK, OL, OM, OP, OR, OS, OX
P PA, PB, PC, PE, PG, PH, PJ, PK, PL, PM, PN, PP, PR, PS, PT, PW, PX, PY
R RA, RB, RE, RH, RK, RM, RP, RR, RS, RT, RW, RX, RY, RZ
S SA, SB, SC, SE, SG, SH, SJ, SK, SL, SM, SN, SP, SR, SS, ST, SW, SX, SY, SZ
T TA, TB, TE, TH, TK, TL, TM, TP, TR, TS, TT, TW, TX, TY, TZ
W WA, WB, WE, WK, WL, WM, WP
Y YA, YB, YE, YH, YK, YL, YM, YP, YR, YS, YT, YW, YX, YY, YZ
Z ZA, ZB, ZE, ZH, ZK, ZL, ZM, ZP, ZR, ZS, ZT, ZW, ZX, ZY

Download form CA6855 Employees National Insurance number trace (PDF 590K)

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Improving the operation of PAYE: Real time information (RTI)

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