Filing of PAYE In-year Returns - Clarification from new Regulations

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25 October 2007

As part of the process of introducing mandatory filing of forms P45 and P46 from April 2009 for employers with 50 or more employees, HMRC is making a number of changes to the content and filing arrangements for forms P45, P46 and is introducing a new form P46(Pen). The statutory basis for these changes is now in place, with the necessary amendments to the Income Tax (Pay As You Earn) Regulations 2003 coming into force from 6 April 2008 and 6 April 2009, as appropriate.

The adjustments to PAYE procedures have already been explained in recent newsletters but are summarised below, with some clarifications as revealed by the amendment Regulations. Note that the changes and dates below are statutory changes and HMRC may introduce some of them earlier. For example, P45s from April 2008 will include date of birth and gender but providing that information is not mandatory until April 2009.

6 April 2008

P46

must be sent to HMRC if Statement A or B applies and when the first payment to the new employee equals or exceeds the NICS lower earnings limit (instead of when it exceeds the PAYE threshold)
if the employee has not completed the form, or has not fully completed it, the employer must enter the missing information before sending it to HMRC

6 April 2009

P45(Part 1)

inclusion of employee's date of birth and gender (but not on the other Parts)
the employer must enter new employee's date of birth and gender (date of birth no longer optional)

P45(Part 3)

the pension payer (who is not the pensioner's employer immediately before retirement) must enter the pensioner's date of birth and gender

P46(Pen)

the new form for providing details of a new pensioner, where no P45 is completed because the pension payer was the pensioner's employer immediately before retirement (replaces form P160)
the pension provider must give a copy of the information provided on the completed form to the pensioner (not necessarily a copy of the completed form)
the employer must enter the pensioner's date of birth and gender
the employer must enter the annual amount of the pension payable (and payment frequency no longer required)
must be completed by a pension payer for a pensioner who is a non-UK resident and who has not provided a P45 (instead of form P46)
must be completed by a pension payer for a pensioner who is a UK resident and who has not provided a P45 (instead of form P46)
if filed electronically, the pension provider must enter the pensioner's address and date of birth (optional for PENNOT electronic filing)

The Regulations also provide HMRC with the statutory authority, from 6 April 2008, to send the annual e-filing notice and e-payment notice to employers electronically, instead of just by post.

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Further information:
The Income Tax (Pay As You Earn) (Amendment No. 4) Regulations 2007

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