The Income Tax (Pay As You Earn) Regulations 2003

CHAPTER 2 U.K. NEW EMPLOYEES (OTHER THAN PENSIONERS): FORMS P45 AND P46

Scope of Chapter 2 U.K.

41.  This Chapter sets out the procedure to be followed for deductions and repayments (Form P45 and P46 procedure) in cases to which Chapter 3 (new pensioners: Forms P45 and P46) does not apply (see regulation 54).

Commencement Information

I1 Reg. 41 in force at 6.4.2004, see reg. 1

Procedure if employer receives Form P45 U.K.

42.—(1) This regulation applies—

(a) if an employee gives Parts 2 and 3 of Form P45 to the employer on commencing employment, and

(b) in the circumstances mentioned in regulation 51(2) (late presentation of Form P45: before employer required to send Form P46).

(2) The new employer must prepare a deductions working sheet and record on it the following information shown in Parts 2 and 3 of Form P45—

(a) the employee’s name,

(b) the employee’s national insurance number.

(3) If Parts 2 and 3 of Form P45 show that the earlier employment ended in the current tax year, the new employer must comply with regulation 43.

(4) If—

(a) Parts 2 and 3 of Form P45 show that the earlier employment ended in the previous tax year, and

(b) the new employment commences on or before 24th May,

the new employer must comply with regulation 44.

(5) If—

(a) Parts 2 and 3 of Form P45 show that the employment ended in the previous tax year, and

(b) the employment commences after 24th May,

the new employer must comply with regulation 45.

(6) If Parts 2 and 3 of Form P45 show that the employment ended in any earlier tax year, the new employer must comply with regulation 45.

(7) In all cases the new employer must then insert in Part 3 of Form P45—

(a) the employer’s employer reference,

(b) the date on which the new employment commenced,

(c) any number used to identify the employee,

(d) the employee’s code in use by the employer if different from the code shown in Parts 2 and 3 of Form P45,

(e) any figure recorded in accordance with paragraph (5)(c) or (6)(c) of regulation 43 (Form P45 for current tax year), if different from the total tax to date shown on Parts 2 and 3 of Form P45,

(f) the employee’s address,

(g) the employee’s date of birth, F1 ...

[F2 (ga) the employee’s sex,]

(h) the employee’s job title or description,

(i) the employer’s name, and

(j) the employer’s address.

(8) The employer must then send Part 3 of Form P45 to the employer’s Inland Revenue office.

Textual Amendments

F1 Words in reg. 42(7)(g) omitted (6.4.2009) by virtue of The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 4(a)

F2 Reg. 42(7)(ga) inserted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 4(b)

Commencement Information

I2 Reg. 42 in force at 6.4.2004, see reg. 1

Form P45 for current tax year U.K.

43.—(1) The new employer must record in the deductions working sheet the code shown in Parts 2 and 3 of Form P45 as the employee’s code.

(2) Paragraphs (3) to (10) apply if Parts 2 and 3 of Form P45 show that the cumulative basis was used.

(3) The employer must record in the deductions working sheet the total payments to date (if any) shown in Parts 2 and 3 of Form P45.

(4) The employer must record in the deductions working sheet the following additional information, or keep such records as enable its production.

(5) If the code shown in Parts 2 and 3 of Form P45 is a K code, the additional information is—

(a) the total additional pay to date,

(b) the total taxable payments to date, and

(c) the lower of the total tax to date as at the week or month shown in Parts 2 and 3 of Form P45 and the total net tax deducted shown in it.

(6) In any other case, the additional information is—

(a) the total free pay to date,

(b) the total taxable payments to date, and

(c) the corresponding total tax to date as at the week or month shown in Parts 2 and 3 of Form P45.

(7) The amounts required by paragraphs (5)(a) and (b) and (6)(a) and (b) must be arrived at by the employer by reference to the information shown in Parts 2 and 3 of Form P45.

(8) On making any relevant payment to the employee, the employer must deduct or repay tax by reference to the employee’s code on the cumulative basis.

(9) For the purposes of—

(a) paragraph (8), and

(b) item 8 of Table 2 in regulation 36(4) (Form P45), and

(c) regulation 55(4)(f) [F3 (Form P46(Pen))],

the total payments to date recorded in the deductions working sheet in accordance with paragraph (3), and the figure recorded in accordance with paragraph (5)(c) or (6)(c) must be treated as if they were relevant payments made to the employee by, and tax deducted by, the new employer.

(10) For the purposes of regulation 23(8) (cumulative basis: meaning of previous total tax to date) the figure recorded in accordance with paragraph (5)(c) or (6)(c) must be treated as the previous total tax to date when the employer next makes a relevant payment to the employee.

(11) If Parts 2 and 3 of Form P45 show that the non-cumulative basis has been used, on making any relevant payment to the employee the employer must, subject to regulation 32 (higher rate code: deductions), deduct or repay tax by reference to the employee’s code on the non-cumulative basis.

(12) The receipt by the employer of Parts 2 and 3 of Form P45 is treated as the issue by the Inland Revenue of the code shown in Parts 2 and 3 of Form P45 as the code for use in respect of the employee.

Textual Amendments

F3 Word in reg. 43(9)(c) substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 5

Commencement Information

I3 Reg. 43 in force at 6.4.2004, see reg. 1

Form P45 for previous tax year: employment starting on or before 24th May U.K.

44.—(1) The new employer must—

(a) record in the deductions working sheet the code shown in Parts 2 and 3 of Form P45 as the employee’s code, and

(b) deduct or repay tax by reference to that code on the cumulative basis, subject to regulation 32 (higher rate code: deductions).

(2) The receipt by the employer of Parts 2 and 3 of Form P45 is treated as the issue by the Inland Revenue of the code shown in Parts 2 and 3 of Form P45 as the code for use in respect of the employee.

Commencement Information

I4 Reg. 44 in force at 6.4.2004, see reg. 1

Other Forms P45 U.K.

45.—(1) The new employer must—

(a) record in the deductions working sheet the emergency code as the employee’s code, and

(b) deduct tax from each relevant payment using the emergency code on the non-cumulative basis.

(2) The emergency code is treated as having been issued to the employer by the Inland Revenue as the code for use in respect of the employee.

Commencement Information

I5 Reg. 45 in force at 6.4.2004, see reg. 1

Form P46 where employer does not receive Form P45 and code not known U.K.

46.—(1) This regulation applies if—

(a) an employee commences employment without giving the employer Parts 2 and 3 of Form P45, and

(b) a code in respect of the employee has not otherwise been issued to the employer.

[F4 (1A) The employee must provide the following information in Form P46.

(1B) The information is —

(a) the employee’s national insurance number (if known),

(b) the employee’s full name,

(c) the employee’s sex,

(d) the employee’s date of birth, and

(e) the employee’s full address including postcode.]

[F5 A seconded expatriate who is a national of an EEA state (see section 56(3)(za) of ITA), or is a Commonwealth citizen (see section 278(2)(a) of ICTA), must provide confirmation of this as additional information.]

[F6 (1C) In this regulation and in regulations 47 to 49, a “seconded expatriate” is an employee meeting one of the following descriptions.

Description 1: An employee in section 689 ITEPA (employee of non-UK employer) whose “work” in section 689(6) starts on 6 April 2009 or later.

Description 2: An employee in a branch of an employer. These Regulations would not apply to that employer but for that branch. The employer seconded the employee to that branch. The employee was not employed in the United Kingdom immediately before the secondment. The secondment starts on 6 April 2009 or later.]

(2) The employee must indicate in Form P46 which F7 ... of the following statements [F8 applies]—

• [F9 Statement A: that the employment referred to in paragraph (1)(a) is the employee’s first employment since the preceding 6^th April, and the employee has not since that date received—

  (a)

  jobseeker’s allowance or incapacity benefit which is subject to income tax, or

  (b)

  a retirement pension or an occupational pension;

  Statement B: that the employee is not receiving a retirement pension or an occupational pension and since the preceding 6^th April—

  (a)

  has had another employment, but is not now in receipt of employment income from it, or

  (b)

  has received jobseeker’s allowance or incapacity benefit which is subject to income tax, but payment of that allowance or benefit has ceased;

  Statement C: that the employee either has another employment (which is continuing) or is in receipt of a retirement pension or an occupational pension.]

F10 ...

[F11 A seconded expatriate must indicate instead which of the following statements applies—

Statement A: the employee intends to live in the United Kingdom for more than 6 months;

Statement B: the employee intends to live in the United Kingdom for less than 6 months;

Statement C: the employee will work both inside and outside the United Kingdom, but will live outside.]

[F12 (2A) A Form P46 must be—

(a) signed by the employee; or

(b) delivered by the employer by an approved method of electronic communications after he has complied with paragraph (2B).

(2B) To the extent that the information contained in it relates to the employee, the employer must verify the content of a Form P46 before it is delivered.

(2C) If, despite the requirements of paragraphs (2) to (2B), a Form P46 is sent or delivered to an officer of Revenue and Customs without the requirements of those paragraphs being satisfied, the employer must deduct tax [F13 on the non-cumulative basis using code 0T] from the employee’s earnings.]

[F14 (3) The employer must provide the following information in the Form P46—

(a) the date on which the employment started;

(b) the employee’s works payroll number and the department or branch (if any) in which the employee is employed;

(c) the title of the job;

(d) the employer’s PAYE reference;

(e) the employer’s name;

(f) the employer’s full address, including the postcode; and

(g) the tax code used in relation to the employee’s earnings.]

(4) The employer must keep the Form P46 until required to send it to the Inland Revenue in accordance with regulations 47 to 49.

(5) Before sending the Form P46, the employer must indicate in the Form which code is being used in respect of the employee and whether it is being used on the non-cumulative basis.

(6) For the purposes of paragraph (1)(b), the employer must ignore any code issued to the employer in respect of an employee’s earlier employment which has ceased.

(7) This regulation ceases to apply in the circumstances mentioned in regulation 51(2) (late presentation of Form P45: before employer required to send Form P46).

Textual Amendments

F4 Reg. 46(1A)(1B) inserted (6.4.2006) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2005 (S.I. 2005/2691), regs. 1, 3(2)

F5 Words in reg. 46(1B) inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2009 (S.I. 2009/588), regs. 1(1), 3(1)

F6 Reg. 46(1C) inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2009 (S.I. 2009/588), regs. 1(1), 3(2)

F7 Words in reg. 46(2) omitted (6.4.2006) by virtue of The Income Tax (Pay as You Earn) (Amendment) Regulations 2005 (S.I. 2005/2691), regs. 1, 3(3)(a)(i)

F8 Word in reg. 46(2) substituted (6.4.2006) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2005 (S.I. 2005/2691), regs. 1, 3(3)(a)(ii)

F9 Reg. 46(2): Statements A, B, C substituted (6.4.2006) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2005 (S.I. 2005/2691), regs. 1, 3(3)(b)

F10 Words in reg. 46(2) omitted (6.4.2006) by virtue of The Income Tax (Pay as You Earn) (Amendment) Regulations 2005 (S.I. 2005/2691), regs. 1, 3(3)(c)

F11 Words in reg. 46(2) inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2009 (S.I. 2009/588), regs. 1(1), 3(3)

F12 Reg. 46(2A)-(2C) inserted (6.4.2006) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2005 (S.I. 2005/2691), regs. 1, 3(4)

F13 Words in reg. 46(2C) substituted (6.4.2011) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 10

F14 Reg. 46(3) substituted (6.4.2006) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2005 (S.I. 2005/2691), regs. 1, 3(5)

Commencement Information

I6 Reg. 46 in force at 6.4.2004, see reg. 1

[F15 Procedure in Form P46 cases: (a) seconded expatriate is national of EEA state or Commonwealth citizen, or (b) employee is not seconded expatriate and Statement A applies] U.K.

47.— [F16 (1) This regulation applies in the case of an employee [F17 (not a seconded expatriate)] who indicates that Statement A applies.]

[F17 It also applies to a seconded expatriate who confirms being a national of an EEA state or being a Commonwealth citizen (see regulation 46(1B)).]

(2) On making the first relevant payment which [F18 equals or exceeds the lower earnings limit] to the employee, the employer must—

[F19 (a) send the Form P46 to Her Majesty’s Revenue and Customs,]

(b) prepare a deductions working sheet and enter the total payments to date, and

(c) deduct tax on the cumulative basis using the emergency code.

[F20 (2A) To comply with paragraph (2)(a)—

(a) the employer must send the Form P46 to Her Majesty’s Revenue and Customs even if the employee has not provided all of the information required by regulation 46, and

(b) the employer must provide any of the information required by regulation 46(1B) that the employee has not provided.]

(3) On making any subsequent relevant payment before the Inland Revenue issue a code for use in respect of the employee, the employer must continue to deduct or repay tax on the cumulative basis using the emergency code.

[F21 (4) In this regulation, “lower earnings limit” means the lower earnings limit for Class 1 contributions for the purposes of section 5(1) of the Social Security Contributions and Benefits Act 1992.]

Textual Amendments

F15 Reg. 47 heading substituted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2009 (S.I. 2009/588), regs. 1(1), 3(4)

F16 Reg. 47(1) substituted (6.4.2006) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2005 (S.I. 2005/2691), regs. 1, 4(3)

F17 Words in reg. 47(1) inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2009 (S.I. 2009/588), regs. 1(1), 3(5)

F18 Words in reg. 47(2) substituted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(2), 6(a)

F19 Reg. 47(2)(a) substituted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(2), 6(b)

F20 Reg. 47(2A) inserted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(2), 6(c)

F21 Reg. 47(4) added (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(2), 6(d)

Commencement Information

I7 Reg. 47 in force at 6.4.2004, see reg. 1

[F22 Procedure in Form P46 cases: (a) Statement B applies (not seconded expatriate), or (b) Statement B or C applies (seconded expatriate)] U.K.

48.—(1) This regulation applies in the case of an employee [F23 (not a seconded expatriate)] who indicates in the Form P46 that F24 ... Statement B applies.

[F23 It also applies in the case of a seconded expatriate who indicates in the Form P46 that Statement B or C applies.]

(2) On making the first relevant payment which [F25 equals or exceeds the lower earnings limit] to the employee, the employer must—

[F26 (a) send the P46 to Her Majesty’s Revenue and Customs,]

(b) prepare a deductions working sheet and enter the total payments to date, and

(c) deduct tax on the non-cumulative basis using the emergency code.

[F27 (2A) To comply with paragraph (2)(a)—

(a) the employer must send the Form P46 to Her Majesty’s Revenue and Customs even if the employee has not provided all of the information required by regulation 46, and

(b) the employer must provide any of the information required by regulation 46(1B) that the employee has not provided.]

(3) On making any subsequent relevant payment before the employee’s code is issued, the employer must continue to deduct or repay tax on the non-cumulative basis using the emergency code.

[F28 (4) In this regulation, “lower earnings limit” means the lower earnings limit for Class 1 contributions for the purposes of section 5(1) of the Social Security Contributions and Benefits Act 1992.]

Textual Amendments

F22 Reg. 48 heading substituted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2009 (S.I. 2009/588), regs. 1(1), 3(6)

F23 Words in reg. 48(1) inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2009 (S.I. 2009/588), regs. 1(1), 3(7)

F24 Word in reg. 48(1) omitted (6.4.2006) by virtue of The Income Tax (Pay as You Earn) (Amendment) Regulations 2005 (S.I. 2005/2691), regs. 1, 5(3)

F25 Words in reg. 48(2) substituted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(2), 7(a)

F26 Reg. 48(2)(a) substituted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(2), 7(b)

F27 Reg. 48(2A) inserted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(2), 7(c)

F28 Reg. 48(4) added (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(2), 7(d)

Commencement Information

I8 Reg. 48 in force at 6.4.2004, see reg. 1

[F29 Procedure in Form P46 cases: (a) Statement C applies (not seconded expatriate), or (b) Statement A applies (seconded expatriate)F30 ...] U.K.

49.—(1) This regulation applies in any case which is not dealt with by regulation 47 or 48 which concerns an employee to whom regulation 46(1) applies.

(2) On making the first relevant payment to the employee, the employer must—

[F31 (a) send the Form P46 to Her Majesty’s Revenue and Customs,]

(b) prepare a deductions working sheet and enter both the total payments to date and the total tax to date before the first payment as nil,

(c) deduct tax on the cumulative basis using the basic rate code.

[F32 (2A) To comply with paragraph (2)(a)—

(a) the employer must send the Form P46 to Her Majesty’s Revenue and Customs even if the employee has not provided all of the information required by regulation 46, and

(b) the employer must provide any of the information required by regulation 46(1B) that the employee has not provided.]

(3) On making any subsequent relevant payment before the employee’s code is issued, the employer must continue to deduct tax on the cumulative basis using the basic rate code.

[F33 (4) In the case of a seconded expatriate, the emergency code must be used instead of the basic rate code mentioned in paragraphs (2)(c) and (3) (see also regulation 7(3) about the codes).]

Textual Amendments

F29 Reg. 49 heading substituted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2009 (S.I. 2009/588), regs. 1(1), 3(8)

F30 Words in reg. 49 heading omitted (6.4.2011) by virtue of The Income Tax (Pay As You Earn) (Amendment) Regulations 2011 (S.I. 2011/729), regs. 1, 11

F31 Reg. 49(2)(a) substituted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(2), 8(a)

F32 Reg. 49(2A) inserted (6.4.2008) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(2), 8(b)

F33 Reg. 49(4) inserted (with effect in accordance with reg. 1(2)(b) of the amending S.I.) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2009 (S.I. 2009/588), regs. 1(1), 3(9)

Commencement Information

I9 Reg. 49 in force at 6.4.2004, see reg. 1

Procedure in Form P46 cases: code treated as issued by Inland Revenue U.K.

50.—(1) The emergency code or the basic rate code used by the employer in accordance with regulations 47 to 49 is treated, for the purposes of Parts 2 to 4 (codes; deduction and repayment of tax; payments, returns and information) as having been issued by the Inland Revenue as the code for use in respect of the employee.

(2) This does not apply for the purposes of regulation 18 (objections and appeals) and regulations 46 to 49 and 51 to 53 (Form P46 procedure and late presentation of Form P45).

Commencement Information

I10 Reg. 50 in force at 6.4.2004, see reg. 1

[F34 Procedure in cases of retrospective earnings: code treated as issued by HMRC U.K.

50A.— (1) If—

(a) as a result of a retrospective tax provision, a qualifying payment was made in a year (whether open or closed) to a person, and

(b) a code has never been issued to the employer in respect of employment with whom that qualifying payment was made,

paragraph (2) applies.

(2) Where this paragraph applies the higher rate code applicable to the year in which the qualifying payment was made is treated, for the purposes of Parts 2 to 4 (codes, deduction and repayment of tax, payments, information and returns) as having been issued by HMRC as the code for use in respect of the employee in relation to that year.

(3) Paragraph (2) does not apply for the purposes of regulation 18 (objections and appeals) and regulations 46 to 49 and 51 to 53 (Form P46 procedure and late presentation of Form P45).]

Textual Amendments

F34 Reg. 50A inserted (6.4.2007) by The Income Tax (Pay as You Earn) (Amendment) Regulations 2007 (S.I. 2007/1077), regs. 1, 7

Late presentation of Form P45 U.K.

51.—(1) This regulation applies if an employee gives Parts 2 and 3 of Form P45 to the employer after commencing employment.

(2) If the employee gives Parts 2 and 3 of Form P45 to the employer before the employer is required to send the Form P46 to the Inland Revenue under regulation 47 to 49, regulation 42 (procedure if employer receives Form P45) applies.

(3) If the employee gives Parts 2 and 3 of Form P45 to the employer—

(a) after the Form P46 is required to have been sent to the Inland Revenue, but

(b) before the employee’s code has been issued to the employer,

this regulation and regulation 52 (late presentation of Form P45: employer’s duties) apply.

(4) If the employee gives Parts 2 and 3 of Form P45 to the employer after the employee’s code has been issued to the employer, they must be destroyed.

(5) If Parts 2 and 3 of Form P45 show that the employment ended in the current tax year then, unless the employer has already ceased to employ the employee—

(a) the code shown in Parts 2 and 3 of Form P45 is treated as having been issued by the Inland Revenue to the employer on the day the employee gives them to the employer, and

(b) the employer must comply with regulation 52.

(6) If Parts 2 and 3 of Form P45 show that the employment ended in the previous tax year and the employee gives them to the employer on or before 24th May then, unless the employer has already ceased to employ the employee—

(a) the code shown in Parts 2 and 3 of Form P45 is treated as having been issued by the Inland Revenue to the employer on the day the employee gives them to the employer,

(b) the employer must deduct or repay tax by reference to that code using the cumulative basis, subject to regulation 32 (higher rate code: deductions), and

(c) the employer must comply with paragraphs (2) and (3) of regulation 52.

(7) Parts 2 and 3 of Form P45 must be destroyed—

(a) if they show that the employment ended in the previous tax year and the employee gives them to the employer after 24th May, or

(b) if they show that the employment ended in an earlier tax year.

Commencement Information

I11 Reg. 51 in force at 6.4.2004, see reg. 1

Late presentation of Form P45: employer’s duties U.K.

52.—(1) This regulation applies in the circumstances mentioned in regulation 51(5); and paragraphs (2) and (3) of this regulation also apply in the circumstances mentioned in regulation 51(6).

(2) The employer must insert in Part 3 of Form P45—

(a) the employer’s employer reference,

(b) the date on which the new employment commenced,

(c) any number used to identify the employee,

(d) the employee’s code in use by the employer if different from the code shown in Parts 2 and 3 of Form P45,

(e) if Parts 2 and 3 of the Form P45 show that the cumulative basis has been used, the figure (if any) recorded in accordance with paragraph (7)(c) or (8)(c) if different from the total tax to date shown on Parts 2 and 3 of Form P45,

(f) the employee’s address,

(g) the employee’s date of birth, F35 ...

[F36 (ga) the employee’s sex,]

(h) the employee’s job title or description,

(i) the employer’s name, and

(j) the employer’s address.

(3) The employer must then send Part 3 of Form P45 to the employer’s Inland Revenue office.

(4) The employer must prepare a deductions working sheet (unless the employer has already prepared one) in accordance with the following information shown in Parts 2 and 3 of Form P45—

(a) the employee’s name,

(b) the employee’s national insurance number, and

(c) the employee’s code.

(5) The employer must record in the deductions working sheet the sum of—

(a) the total payments to date (if any) shown in Parts 2 and 3 of Form P45, and

(b) the relevant payments which have been made by the employer since the employment commenced which have not already been recorded in the deductions working sheet.

(6) If Parts 2 and 3 of Form P45 show that the cumulative basis has been used, the employer must also record the following additional information in the deductions working sheet, or keep such records as enable its production.

(7) If the code shown in Parts 2 and 3 of Form P45 is a K code, the additional information is—

(a) the total additional pay to date,

(b) the total taxable payments to date, and

(c) the lower of the total tax to date as at the week or month shown in Parts 2 and 3 of Form P45 or the total net tax deducted shown in it.

(8) In any other case, the additional information is—

(a) the total free pay to date,

(b) the total taxable payments to date, and

(c) the corresponding total tax to date as at the week or month shown in Parts 2 and 3 of Form P45.

(9) The employer must ascertain the amounts required by paragraphs (7)(a) and (b) and (8)(a) and (b) by reference solely to the information shown in Parts 2 and 3 of Form P45.

(10) If Parts 2 and 3 of Form P45 show that the cumulative basis has been used, the employer, on making any subsequent relevant payment to the employee, must deduct or repay tax by reference to the code shown in Parts 2 and 3 of Form P45 on the cumulative basis.

(11) For the purposes of—

(a) paragraph (10), and

(b) item 8 of Table 2 in regulation 36(4) (Form P45), and

(c) regulation 55(4)(f) [F37 (Form P46(Pen))],

the total payments to date recorded in the deductions working sheet in accordance with paragraph (5) and the figure recorded in accordance with paragraph (7)(c) or (8)(c) must be treated as if they were relevant payments made to the employee by, and tax deducted by, the new employer.

(12) For the purposes of regulation 23(8) (cumulative basis: meaning of previous total tax to date), the figure recorded in accordance with paragraph (7)(c) or (8)(c) must be added to any actual previous total tax to date, and the total treated as the previous total tax to date when the employer next makes a relevant payment to the employee.

(13) If Parts 2 and 3 of Form P45 show that the non-cumulative basis has been used, on making any relevant payment to the employee, the employer must, subject to regulation 32 (higher rate code: deductions), deduct tax by reference to the code shown in Parts 2 and 3 of Form P45 on the non-cumulative basis.

Textual Amendments

F35 Words in reg. 52(2)(g) omitted (6.4.2009) by virtue of The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 9(a)(i)

F36 Reg. 52(2)(ga) inserted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 9(a)(ii)

F37 Word in reg. 52(11) substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 9(b)

Commencement Information

I12 Reg. 52 in force at 6.4.2004, see reg. 1

Form P46 cases: subsequent procedure on issue of employee’s code U.K.

53.—(1) On making any relevant payment to an employee falling within regulation 47 to 49 (procedure in Form P46 cases) after the Inland Revenue have issued a code to the employer for use in respect of the employee, the employer must deduct or repay tax by reference to that code.

(2) For the purposes of paragraph (1) and regulation 66 (deductions working sheets)—

(a) any total payments to date notified to the employer by the Inland Revenue are treated as if they represented relevant payments made by the employer; and

(b) the total net tax deducted before the first payment made in accordance with this regulation is taken to be the sum of—

(i) the total net tax deducted, if any, notified to the employer by the Inland Revenue, and

(ii) any tax which the employer was liable to deduct from the employee’s relevant payments under regulation 47, 48 or 49.

(3) For the purposes of—

(a) item 8 of Table 2 in regulation 36(4) (Form P45), and

(b) regulation 55(4)(f) [F38 (Form P46(Pen))],

any total payments to date and total net tax deducted which are notified to the employer by the Inland Revenue must be treated as if they were relevant payments made to the employee by, and tax deducted by, the employer.

(4) If the employee’s previous code was used on the cumulative basis, any amount notified to the employer under paragraph (2)(b)(i) must be added to the previous total tax to date for the purposes of regulation 23(8) (cumulative basis: meaning of previous total tax to date).

Textual Amendments

F38 Word in reg. 53(3) substituted (6.4.2009) by The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007 (S.I. 2007/2969), regs. 1(3), 10

Commencement Information

I13 Reg. 53 in force at 6.4.2004, see reg. 1