PART 3DEDUCTION AND REPAYMENT OF TAX

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

F1Procedure where no Form P45 and: (a) employee is a not seconded expatriate and paragraph 41(c) of Schedule A1 applies; or (b) employee is a seconded expatriate and paragraph 43(a) of Schedule A1 applies49E

1

This regulation applies in any case which is not dealt with by regulation 49C or 49D.

2

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

a

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,

b

deduct tax on the cumulative basis using the basic rate code.

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.

4

In the case of a seconded expatriate, the emergency code must be used instead of the basic rate code mentioned in paragraphs (2)(b) and (3).