With only a few weeks until real time information (RTI) goes live, HMRC have made some changes to the new-starter process.

Employers will no longer have to submit P45s and P46s as the information will be submitted by RTI as part of the full payment submission (FPS). Under the original proposals, the employee had to complete a starter declaration, similar to the P46 statements, even if they submitted a current P45. The new process is:

• P45 for 2013/14 and employee joins from 6 April 2013: use the tax code on the P45 (unless it is BR, 0T or D prefix) and use starter declaration B on the FPS.
• If the P45 leaving date is 2012/13 and the employee joins between 6 April and 24 May, add 134 points if code has an L suffix. Do not carry forward any week or month 1 basis; use starter declaration B on the FPS.
• If P45 leaving date is 2012/13 and the employee joins on or after 25 May 2013 (unless the code is BR, 0T or D prefix) use emergency code 944L on a week or month 1 basis and use starter declaration B on the FPS.
• If the leaving date on the P45 is any of the above, the employee joins during 2013/14 and the code on the P45 is BR, 0T or D prefix, use the code on the P45 and starter declaration C on the FPS.
• Where the employee submits a P45 for 2011/12 or does not submit a P45, the process is the same, the new employee must complete the starter declaration and the following letter is declared on the FPS:

Where a P45 is received after the first FPS has been submitted return the P45 to the employee, operate the tax code reported on the employee’s first FPS and tell the employee to contact HMRC if the code is wrong.

If the starter declaration is received after the first FPS is submitted, add any personal details to the system and continue to operate the tax code reported on the first FPS. The employee should talk to HMRC if the tax code is incorrect.

HMRC have introduced a new starter checklist (available online) to replace the P46 under RTI.

Linda Pullan is head of Payroll Alliance. Tel: 020 8662 2050

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