HM Revenue and Customs have launched a New Starter Checklist as an alternative way for new employees to ensure their tax codes are correct if they don’t have a P45.
By answering a series of questions and selecting the appropriate answers, this will produce a new starter declaration which can then be downloaded and emailed or posted to the employer.
Nearly three million Real Time Information submissions for new starters with discrepancies were received in 2021 to 2022. The new guidance will help avoid postage costs and incorrect tax being applied, saving employees and employers time and less contact with us.
For those taxpayers that require a print and post service, the New Starter Checklist for PAYE has been amended to reflect the interactive guidance and can be printed.
Why are so many incorrect starters applied?
For an industry that prides itself on principles of ‘accurate’ and ‘on-time’, many employers are failing to comply with PAYE requirements under Real Time Information on obtaining and reporting starters!
The New Starter Checklist completion is essential for accurate tax collection and notification to HMRC.
Employees must be requested to either provide an in date P45 or complete the employee declared starter checklist on joining and certainly in time for the first payment.
Defaulting to employer declared C operating the ‘default’. Many employers are failing in their duties and serving their employees poorly.
And completion of the checklist has significant importance in obtaining Student and Postgraduate Loan information.
Now payroll is probably going to point the finger at HR for failing in this duty as part of the onboarding process in not providing the form or link to new employees and equally not ensuring they are collected, recorded and reported.
Come on employers – Get it right. Else ‘accurate’ and ‘on-time’ is meaningless for your new starters!
Get your new employees to declare.
PAYadvice.UK 16/10/2022
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