With RTI imminent, the way employers report new starter information to HMRC will change. You will no longer submit P45s or P46s as all starter information will be reported on the first Full Payment Submission (FPS) for those employees. Previously, a new starter would provide their new employer with either a P45 or a P46 if they did not have a P45. With RTI, even if your new employee provides you with a P45, you still need to ask them certain P46 like questions to determine what tax code to use, depending on when they left their previous employer and their start date with you. HMRC have now provided an optional Starter Checklist form which can be downloaded from the HMRC website you may find helpful. This form, which RTI employers can use in lieu of form P46, is also intended to be used alongside a P45. This is a massive change to previous procedures and may take some time getting used to!
Click here for more information from the HMRC website on new starters for RTI.
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