New Starter Help!!!

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:29AM in AAT student discussion
I have just found out that we had a new starter at one of our companies which I'm doing the payroll for.

He started on 26/03/07 (last tax year) Do I pay him using 503lWK1 or 522LWK1 as his first pay is in this new tax year. I don't have a P45 if he does not get it in time he will send me a completed P46

Jackie

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:New Starter Help!!!

    Firstly I would always check with the HMRC website,www.hmrc.gov.uk

    If your employee receives their first pay in the new tax year, week or month 1, then you should apply the emergency code on an accumulative basis, 522L. However you should check whether they are receiving Jobseekers allowance. There are some useful notes on the P46 regarding this.

    Hope this helps.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:New Starter Help!!!

    If the employee is first paid after the year end, I wouldn't worry too much about his P45. If you get this, you will ignore the previous pay figures, and tick the box to say the employee wasn't paid between the date he started and the next 5 April.

    I would ask the employee to sign a P46 because:
      The tax code on the P45 will not reflect the change in personal allowance for the new tax year
      If the employee started at the end of March 2007, it is very unlikely he will have received income support, or other employment income since last 6 April. He can therefore tick Box A, and you can use 522L (as opposed to 522LW1)
      It is quicker to get the P46 signed and sent off the HMRC to get a revised tax code if needed (esp. if you file online), then it is to wait for the P45, which you will ignore most of the figures anyway.

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