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HMRC internal manual

PAYE Manual

PAYE operation: simplified deduction schemes: employee leaves

Note: DOME schemes became standard P schemes from 6 April 2014. This guidance refers to all years up to and including 2013-14.

When an employee leaves, the employer will send in the deduction card P12. The Employer section will update the NPS record to show

  • Total pay and tax
  • The first and last pay days
  • The name and address of any new employer

The Employer section must 

  • Use the VIEW AND EDIT EMPLOYMENT DETAILS screen to enter the

    • Date of leaving
    • Week or month number for the date of leaving
    • Operated code on a Week 1 or Month 1 basis
    • Pay and tax figures

    And to

    • Set cessation source as ‘user’
    • Update the CONTACT HISTORY screen to show record created from P12
  • Use the PAYE Service INSERT EMPLOYMENT DETAILS screen to create the new employment if the new employer details are shown, see ‘New employee (Action Guide)’ at PAYE73036 
  • File the form P12R from the Employer section in the P45(1) box

Or, if a repayment claim is received

  • Use the details on form P12R to calculate any repayment


  • File the form P12R from the Employer section with the claims papers