Real Time Information

What are the changes to the forms you know

This is our fourth eshot in the series on Real Time Information (RTI) for employers and pension providers. You can find our first eshot, Real Time Information – what is it and are you prepared here, our second, Real Time Information – how will it work, here, and our third, Real Time Information – what you need to do now, here.

This time we are looking at what changes HMRC is making to the forms that as an employer you are familiar with – P46, P45, P35, P14 and P38A (supplementary return).

Once you are in the RTI system your payroll will report this information via full payment submission (FPS) throughout the tax year, so you will no longer need to submit:

new employee information – P45 part 3, P46, P46 (pen) or P46 (expat) leaver information – P45 part 1 (but you will give your employee the remaining parts of the P45) end of year returns – P35, P14 and P38A. When a new employee starts you will be required to ask them a series of questions, similar to the current P46 questions, to establish the correct tax code to apply and you may wish to consider using HMRC's new short form P46. You must keep a written record of their answers and report this information to HMRC on your FPS.

Where the employee supplies a P45 you should calculate the tax to be deducted in the same way as you would now. The code from the P45 should be included on the FPS with the answers to the P46-type...