PART 3DEDUCTION AND REPAYMENT OF TAX

CHAPTER 1DEDUCTION AND REPAYMENT

Cessation of employment

Cessation of employment: Form P45I136

1

On ceasing to employ an employee in respect of whom a code has been issued, the employer must complete Form P45.

F41A

If Part 3 of Form P45 is not available—

a

the employer is not required to complete that Part of the Form, and

b

where the employer does not complete that Part, any requirement, however expressed, in these Regulations which relates only to Part 3 does not apply.

2

The employer must then—

a

send Part 1 of that form to the Inland Revenue F3if the employer is one to whom paragraph (2A) applies, and

b

provide Parts 1A, 2 and 3 to the employee,

on the day on which the employment ceases or, if that is not practicable, without unreasonable delay.

F22A

This paragraph 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.

3

Retirement on pension is not a cessation of employment for the purposes of this regulation if the PAYE pension income is paid by the same employer after retirement.

4

The information listed in column 1 of Table 2 must, subject to the conditions set out in column 2, be provided in the various Parts of Form P45 as indicated in columns 3 to 5.

Table 2Information which must be provided in Form P45

1.

2.

3–5.

Information to be provided

Conditions

Form P45 Part

1

1A

2, 3

1

the employer’s PAYE reference

yes

yes

yes

2

the employee’s national insurance number

if known

yes

yes

yes

3

the employee’s name

yes

yes

yes

F13A. the employee’s date of birth

yes

no

no

3B. the employee’s sex

yes

no

no

4

the date on which the employment ceased

yes

yes

yes

5

the employee’s code or, if more than one, the latest code, issued by the Inland Revenue for the tax year during which the employment ceased

yes

yes

yes

6

whether the employee’s code is used on the cumulative basis

yes

yes

yes

7

the tax week or month in which the last relevant payment was made to the employee or, in a case falling within regulation 24, was treated as having been made

if the employee’s code is used on the cumulative basis

yes

yes

yes

8

the total payments to date and the corresponding total net tax deducted

if the employee’s code is used on the cumulative basis

yes

yes

yes

9

the total payments to date relating to the employment in question and the corresponding total net tax deducted

if the employee’s code is used on the cumulative basis, and if different from the information supplied under item 8

yes

yes

no

10

the total payments to date relating to the employment in question and the corresponding total net tax deducted

if the employee’s code is not used on the cumulative basis

yes

yes

no

11

the number used by the employer to identify the employee

if any

yes

no

no

12

the department or branch in which the employee was employed

if any

yes

no

no

13

the employee’s address

if known

yes

no

no

14

the employer’s name

yes

yes

no

15

the employer’s address

yes

yes

no

16

the date the Form is completed

yes

yes

no

5

This regulation is subject to regulations 38, 39 and 180 (death of employee etc).