Since the start of lockdown there has been a huge decrease in the number of tax forms (P45s and Starter Checklists) being sent to Payroll. This will inevitably mean that many of your employees are paying too much tax. It would be a useful exercise to go back and check that you have sent either form for each of your new starters since April. Going forward, please ensure that you do this for all future starters. You should send all forms direct to your Payroll Officer by email.
This is the tax advice that has been given previously, but has been updated. Please read this, especially if you are new to the job yourself, as this is essential information that affects your employees’ pay:
“It is essential that departments send a tax form (either P45 or Starter checklist) to Payroll for every new starter. Please build this into your new starter procedures/checklists if it is not already there. You must first ask every starter for a P45. When they give it to you, please send parts two and three to your Payroll Officer by email. If your employee does not have a P45 on day one (e.g. employee is new to the UK, or previous employer has not yet sent it) then they must complete a Starter Checklist, to be sent to your Payroll Officer by email. If the employee subsequently receives their P45, this must still be sent to Payroll regardless of whether a Starter Checklist has already been provided (the preference is for Payroll to receive both forms rather than neither). Many staff are paying too much tax because these essential forms have been overlooked. Please help your employees by ensuring that either tax form is sent to payroll as soon as they start work. These rules also apply to re-hires, as it is not the case that their previous tax code can be carried forward.”
Two helpful notes on Starter Checklist completion:
Employee statements A, B and C only relate to previous employment in the UK in this tax year (April to March). Employees working abroad immediately prior to the job here should tick A.
The student/postgrad loan declaration is for UK loans only.
A new Starter Checklist was introduced for tax year 2019/20 (updated March 2020) which now includes Postgraduate student loans. This form MUST be used from now on and can be accessed online. Some students now have to repay both Student Loan plans and this is also only captured on the new form, so it is essential that you use these from now on. Please destroy all stocks of old Starter Checklists/P46s, as Payroll is still receiving them, but they don’t hold enough information.