How do late leavers affect HMRC submissions?

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When an employee departs from the company, there are necessary payroll procedures that need to be adhered to. This ensures accurate records are kept and the relevant authorities are informed. Here, we'll guide you through the steps of notifying HMRC and providing the required documents to the departing employee.


Notifying HMRC via RTI Data Submission

Every pay period, your company sends Real Time Information (RTI) data to HMRC, detailing payments to employees. When an employee's status is changed to "leaver" on your payroll:

  • HMRC will be automatically notified during the next RTI data submission.
  • It's crucial to make sure this status update is accurate to ensure HMRC has the correct information.

Providing the P45 Form

After making an employee a leaver, it's your responsibility to:

  • Generate a P45 form for them.
  • The P45 form provides a record of the total pay and tax that the employee has received in the current employment tax year.
  • Hand this form to the departing employee for their records. They might need it when starting a new job or for personal record-keeping.

Late Leaver Considerations

In some scenarios, an employee might be marked as a "late leaver" after a pay period has already been processed. Here's what you need to know:

  • Making an employee a late leaver will create an extra record for transmission.
  • This record will show zero payments for that employee.
  • This transmission to HMRC will take place even if there is no change in the payment amounts. This ensures HMRC has accurate, up-to-date records of all employees, including those who have recently left.

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