Employment update - May 2008
There are changes from April 2008 which mean that you will have to do some things differently.
All P45s and P46s whether sent online or on paper must meet HMRC's updated quality checks or they will be sent back to you to be put right. It would be helpful to HMRC if you enter your employees dates of birth and gender on P45s and P46 (and similar pension forms), as well as providing their National Insurance number wherever possible.
You will have to show both dates of birth and gender on all P45s, P46s and pensions information from April 2009.
Age discrimination law does not make it illegal to ask for, hold, or disclose to HMRC a person's date of birth.
You will have to send HMRC a P46 (statement A (first job since 6th April) and statement B (only job) cases). when the employee's earnings reach the Lower Earnings Limit.
If your new employee does not give you a P45 (part 3) or a completed P46, you will have to fill in section 1 of a P46, send it to HMRC and use default code BR. The emergency code can no longer be used.
changes to tax codes and bandwidths
For all employers please ensure you increase your employees code numbers correctly from 6th April 2008. Where a new tax code has not been issued note that all existing "L" codes will increase by 21:
- i.e. 522L becomes 543L
The bandwidth for higher rate tax (40%) increases in line with the budget decision to £36,000 for 2008/09. However this can only be applied from 18th May 2008. Please make sure you have the correct new tables, particularly if you have employees with high earnings.
The more recent changes announced by the Chancellor are still to be confirmed.
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