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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Employment maintenance: create employment: introduction

The PAYE Service holds one record for each individual and all employments that an individual has are held on that single record. If an individual has more than one source of income, the main source is recorded as the primary employment and any further periods of employment are recorded as secondary employments.

An employer notifies us of a new employee by one of the following methods

Non RTI employer

  • A paper P46 or P45 Part 3 is captured through the DATA CAPTURE screen; if the employer is exempt from filing online


  • An online P46 or P45 Part 3

RTI employer

  • Starter information is included on a Full Payment Submission (FPS); P46 or P45 Part 3 will not be sent. The PAYE Service will automatically set the status of the employment record created depending on the information supplied, see PAYE63030 for further information

When starter information is received, if the PAYE Service is unable to automatically update the individual’s record, a work item will be produced so the individual’s record can be reviewed and updated manually.

Note: For further information on how an employment is created automatically, from an online submission or FPS, see PAYE63030.

The P46 and P45 Part 3 processes described in this section are in relation to a non RTI employer, who is exempt from filing online.

Not all forms can be captured through the DATA CAPTURE screen. In addition to forms being captured through the DATA CAPTURE screen you will also be able to enter starting details provided from the following sources directly on to the individual’s record using the VIEW & EDIT EMPLOYMENT DETAILS screen and the INSERT EMPLOYMENT DETAILS screen from the EMPLOYMENT SUMMARY screen

  • Letter - from employer / individual / agent
  • Telephone call - from employer / individual / agent
  • P46(IB)
  • P46(LS)
  • P60
  • P46(Pen)

Note: When an RTI starter notification is received via an FPS, a new employment will be created automatically and a revised tax code will be calculated where necessary. Therefore there should be no requirement to manually insert an employment record for an employment within RTI.

If you are required to insert an employment record or issue a revised tax code, you will be prompted to make a Contact History note for every update made, see PAYE105015.