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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

Employment maintenance: filing online: employers: automatic entry of leaving details

Submission of P45 Part 1 leaving details

Employers within RTI submit P45 Part 1 leaving details as part of their Full Payment Submission (FPS).

A non RTI employer will submit these details online using Electronic Data Interchange (EDI) or Online Return and Forms - PAYE (ORFP).

After checking the data, the computer process will automatically enter the details on the individual’s record. A work item will be created if

  • A record cannot be processed
  • A Tax Table check shows a discrepancy

Amendments to leaving details

If an RTI employer submits an FPS with amended leaving details, the individual’s employment record will be automatically updated with the latest leaving details received, where the following conditions are met

  • The PAYE reference and works number can be matched to a single ceased employment record, held by an individual within the same tax year
    And
  • The ‘Taxable Pay to Date’ is not equal to the ‘Taxable Pay in Period’

A work item will be created if a Tax Table check shows a discrepancy.

If a non RTI employer submits amended P45 Part 1 leaving details, work item 040 ‘P45(1) - different pay and tax’ will be created.

Payment after leaving

A payment after leaving should only be made by an employer after they have given the employee the P45.

Where a payment after leaving is made the employer will

  • Tick the PAL indicator
  • Deduct tax using code 0T week 1 / month 1 or S0T week 1/month 1 where the employee pays tax at the Scottish rate (PAYE100035)
  • Use the original leaving date on the FPS
  • Use the actual payment date

If the payment after leaving is in the same tax year

The employer will include the additional payment in pay in period and the revised year to date will include the additional payment

  • This will not create a new employment, the FPS will match to the existing employment

If the payment after leaving is in a subsequent tax year

The ‘Taxable Pay to Date’ will be equal to the ‘Taxable Pay in Period’

  • A new employment record will be automatically created and ceased for the individual using the payment date on the FPS as the date of leaving and the day before as the start date

Note: However in both scenarios the employer can send the PAL as a separate payment or add the payment on to the totals for the year, both methods are acceptable.

Pay frequency ‘One Off’

An RTI employer records the ‘Pay Frequency’ of payments made to their employee on the FPS.

Where the ‘Pay Frequency’ has been recorded as ‘One Off’, a ceased employment record will be automatically created for the individual from the information held on the FPS.

The ‘Pay Frequency’ can be viewed on the RTI PAYMENT RECORD INFORMATION screen, which can be accessed by selecting the [RTI DATA] button on the EMPLOYMENT DETAILS screen.

This functionality will not apply to employers outside of RTI.

Automatic cessation of employment records

If an RTI employer has previously submitted an FPS for an individual, but then does not submit an FPS for the same individual for the greater of

  • Three consecutive pay periods

Or

  • Three months

The individual’s employment record will be automatically ceased.

The ‘Payment Date’, ‘Tax Code’, ‘Taxable Pay to Date’, and ‘Total Tax to Date’ held on the last FPS received will be used as the cessation information.

Note: The ‘Pay Frequency’ recorded on the individual’s last FPS received will allow the frequency of the pay periods to be determined.

Irregular Employment indicator

An RTI employer will set the ‘Irregular Employment’ payment indicator on an individual’s FPS to indicate that payments will be made to the individual on an ‘irregular’ or infrequent basis.

The setting of this indicator will stop the automatic cessation of the individual’s employment record should the employer stop sending FPS for a period of time.

The ‘Irregular Employment’ payment indicator can be viewed on the RTI PAYMENT RECORD INFORMATION screen, which can be accessed by selecting the [RTI DATA] button on the EMPLOYMENT DETAILS screen.

Automatic potential cessation

When either an RTI or non RTI employer’s PAYE record has been ceased on EBS, all individual employment records held on NPS, which have the same ‘Employer PAYE Reference’ but do not have the JSA indicator set, will be automatically ‘potentially ceased’ or ‘P Ceased’.

The employment record for each individual will be updated with full cessation information when the employer sends in cessation FPS.

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(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)