Simple Payroll question I'm Sure

Yestin
Yestin Registered Posts: 83 Regular contributor ⭐
in General accounting discussion
Hello!!

So, if someone starts working for the company and they don't have a P45 (say they have lost it or something) so you get them to fill out a P46 right! Then after you have submitted the P46 and run the payroll they come to you with the P45?? what do you do? just discard the P45?

Thanks,
Yestin

Comments

  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    I would just file it!
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    What if the p45 would give the correct tax code and the p46 gave the wrong one? I would be inclined to review it and use the p45 but that's my 'common sense' answer as opposed to my magnificent memory for technical correctness..... ;)
  • Yestin
    Yestin Registered Posts: 83 Regular contributor ⭐
    Hum, but I was thinking that as soon as you put the P46 through to HMRC that sets in motion things on their side ie sending you a coding notice and such things?
  • payrollpro
    payrollpro Registered Posts: 427 Dedicated contributor 🦉
    The P45 over rides whatever decision you made using the information on the P46. This is one of the reasons why you must never file the P46 until after the first payment is made, so that a late supply of the P45 can be accommodated without causing a problem.

    I would always file the P45 after I have checked it and entered the figures from it. Often this causes a problem for the employee but then they ought to have handed it over straight away, shouldn't they.

    Payrollpro
  • Yestin
    Yestin Registered Posts: 83 Regular contributor ⭐
    So the fact that the pay run has already been done (before the employee handed over the P45) means??.......
  • PAMDILL
    PAMDILL Registered Posts: 721 Epic contributor 🐘
    Yestin wrote: »
    So the fact that the pay run has already been done (before the employee handed over the P45) means??.......

    Enter the P45 details into their record now and it will sort out their tax etc. in the next payrun then send down the P45 to Tax Office.

    I have had the same thing happen a few times as labourers etc. are the world's worst at handing in paperwork.
  • Anne Boleyn
    Anne Boleyn Registered Posts: 196 Dedicated contributor 🦉
    P45

    Hi

    This was also asked on AccountingWeb

    http://www.accountingweb.co.uk/anyanswers/set-employee-p46-then-employee-provides-p45-what-do/479753

    Hope it helps
  • Yestin
    Yestin Registered Posts: 83 Regular contributor ⭐
    Thanks everyone! I think I know what to do now
  • Yestin
    Yestin Registered Posts: 83 Regular contributor ⭐
    Hold on!

    What about the year to date figure? If I entered the employee onto the system (sage) with a P46 this would have given them a W1/M1 flag and have a zero year to date, then after the first pay run there would obviously be a YTD figure....Soooo if I am to overright the P46 info with the P45 info the YTD figure will be wrong? Do I just add what is on the system from the first payr run to what is stated on the P45? Or and I being a complete numpty?
  • zara5034
    zara5034 Registered Posts: 170 Dedicated contributor 🦉
    So are you saying that, as you have entered P46 details in the previous month, Sage is now not allowing you to enter the P45 details?

    I don't think you can add the P45 year to date figures to those from your first pay run as this will then show incorrectly on a subsequent P45 if he left your employment, and possibly on the P60 too

    Is there not a box somewhere that allows you to enter previous employment income and tax? What would you normally do when you recieve a P6? I would just do the same as that. Sage should then correct the tax and year to date figures in your next pay run.
  • Rozzi Rainbow
    Rozzi Rainbow Registered Posts: 465 Dedicated contributor 🦉
    Yestin wrote: »
    Hold on!

    What about the year to date figure? If I entered the employee onto the system (sage) with a P46 this would have given them a W1/M1 flag and have a zero year to date, then after the first pay run there would obviously be a YTD figure....Soooo if I am to overright the P46 info with the P45 info the YTD figure will be wrong? Do I just add what is on the system from the first payr run to what is stated on the P45? Or and I being a complete numpty?

    Sage should sort it all out for you. I've added P45 details before even after more than one payrun has passed. You enter the YTD figs from the P45, then Sage will add on the one from the payrun you have done so it is all correct.
  • Yestin
    Yestin Registered Posts: 83 Regular contributor ⭐
    Zara you are a genius!! Just went into the employee's record on Sage and there is a "enter P45" button!! and after all was done it asked me if I wanted to submit it to HMRC!! YAYA Awesome, job done!

    I think I was trying to over complicate things when the software does it all for you!

    So, does anyone know of a good payroll course? LOL

    THANK!
  • payrollpro
    payrollpro Registered Posts: 427 Dedicated contributor 🦉
    Yestin,

    Sometimes we all get so wrapped up in what our systems do for us we forget that payroll, like accounting and tax, needs knowledge as well as skills and experience. You are right it is great when the software can do it all for you but that makes me very concerned sometimes.

    The AAT is in the final year now of payroll qualifications under the old NVQ regime and isnt currently developing qualifications under the replacement standards, however IAB do a great apprenticeship in payroll from level 1 up to level 3 and there is work in progress on a level 4.

    In addition you have the chartered institute of payroll professionals qualifications, Learn HR, payroll alliance and Sage payroll training. You ought to be able to find the right course for the level fo work you do somewhere in that lot and I would urge you and others to consider becoming qualified for the benefit of you and your payees.

    Payrollpro

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