188体育

You need to tell HM Revenue and Customs (HMRC) when one of your employees leaves or retires, and deduct and pay the right tax and National Insurance.

What you need to do

If the employee is leaving in the current tax year (before the next 6 April) and you will not be paying them a pension, put their leaving date on their payroll record when you last pay them.

Make deductions as normal when you send your next Full Payment Submission (FPS).

If you pay an employee for the last time but they鈥檙e leaving in the next tax year (on or after the next 6 April), do not put their leaving date in the same FPS as their final payment. Include them in your first FPS in the new tax year with:

• their leaving date
• 鈥�0鈥� in the 鈥楶ay and tax in this period鈥� field
• 鈥�0鈥� in the 鈥榊ear to date鈥� field
• a 鈥楶ayment date鈥� of the FPS payment date for the period

If you did not report an employee leaving

If the employee left in the current tax year and you did not report it in the month they left, include them in your next FPS with:

• their leaving date
• 鈥�0鈥� in the 鈥楶ay and tax in this period鈥� field
• the last reported figures of pay, tax, National Insurance and other payroll information in the 鈥榊ear to date鈥� field
• show the 鈥楶ayment date鈥� as either the current FPS payment date or the last date the employee was paid
• add 鈥楬鈥� (correcting an earlier payroll report) as your reason for reporting late if the 鈥楶ayment date鈥� you entered is not the current FPS payment date

If the employee left in the tax year 2023 to 2024, send an FPS for the previous year showing the correct year to date information, if your software supports it.

If you gave the wrong leaving date

If you put the wrong leaving date in your FPS, update your payroll records with the correct date. Do not report the amendment in your next FPS as this may create a duplicate record for the employee.

If you鈥檝e reported an employee鈥檚 leaving date in your FPS and they carry on working for you:

• use the same payroll ID if you have not given them a P45 yet, remove the leaving date and do not put a new start date
• give them a new payroll ID if you鈥檝e already given them a P45

Follow the guidance for correcting payroll errors if you need to change any other previously reported payroll information.

Paying a company pension

If you鈥檙e paying a pension to the employee:

• do not include their leaving details in your FPS as they鈥檙e still on your payroll
• use a different payroll ID for the pension payments, showing on the FPS that the payroll ID has changed and giving the previous payroll ID
• give the full annual amount of the pension
• use the employee鈥檚 existing tax code on a 鈥榳eek 1鈥� or 鈥榤onth 1鈥� basis until you receive a new code from HMRC, or on a cumulative basis if the first pension payment is in the new tax year
• put 鈥榊es鈥� in the 鈥極ccupational pension indicator鈥� field for each pension payment
• give them a retirement statement showing their employment details up to their retirement date

Do not deduct National Insurance from the pension payments if your scheme is registered with HMRC. You should deduct tax in the normal way.

Paying statutory maternity, paternity or adoption pay

You must continue paying statutory maternity, paternity or adoption pay until the end of an employee鈥檚 statutory leave, even if they stop working for you. You should agree one of the following with the employee:

• give them a P45 when they stop working for you, then deduct tax on the remaining statutory payments using code 0T on a 鈥榳eek 1鈥� or 鈥榤onth 1鈥� basis (use the code S0T if they鈥檙e taxed at the Scottish rate or C0T if they鈥檙e taxed at the Welsh rate)
• use their usual tax code for the statutory payments and give them a P45 after you鈥檝e made the final payment, recording the final payment date as their leaving date

Paying an employee after giving them a P45

If you have to pay an employee after they leave (including someone you鈥檙e giving a taxable redundancy payment over 拢30,000):

• use tax code 0T on a 鈥榳eek 1鈥� or 鈥榤onth 1鈥� basis (use the code S0T if they鈥檙e taxed at the Scottish rate or C0T if they鈥檙e taxed at the Welsh rate)
• deduct National Insurance (unless it鈥檚 a redundancy payment) and any student loan repayments as normal - but if it鈥檚 an 鈥榠rregular鈥� payment like accrued holiday pay or an unexpected bonus, treat it as a weekly payment
• report the payment and deductions in your next FPS, using the employee鈥檚 original 鈥楧ate of leaving鈥� and payroll ID, and set the 鈥楶ayment after leaving鈥� indicator
• give the employee written confirmation of the payment showing the gross amount and deductions
• add the additional payment in the 鈥榊ear to date鈥� field if the payment is in the same tax year

The payment should be the only one in the 鈥榊ear to date鈥� field if it鈥檚 being paid in the next tax year.