38.—[F1(A1) This regulation applies to—
(a)non-Real Time Information employers, and
(b)Real Time Information employers to whom HMRC has given a notice requiring the employer to send to HMRC Form P45 or Form P46 on the commencement of a new employee’s employment.]
(1) On the death of an employee (other than a pensioner) in respect of whom a code has been issued by the Inland Revenue, the employer must—
(a)complete Form P45 indicating in Part 1 that the employee has died, and
(b)send it to the Inland Revenue.
(2) The employer must comply with paragraph (1)—
(a)on the day on which the employer learns of the employee’s death, or
(b)if that is not practicable, without unreasonable delay.
(3) The employer must, on making a relevant payment after learning of the employee’s death but before completing Form P45, deduct or repay tax as if the deceased employee were still alive and employed by the employer at the date of the payment.
(4) Regulation 37(2) to (6) applies to any relevant payment which—
(a)is made in respect of the employee’s employment after the date of the employee’s death, and
(b)is not included in Form P45.
Textual Amendments
F1Reg. 38(A1) inserted (6.4.2012) by The Income Tax (Pay As You Earn) (Amendment) Regulations 2012 (S.I. 2012/822), regs. 1(1), 7
Commencement Information