PAYE Procedures - P45 received after receiving P6 coding notice

Written by Ian Congreave - Filed under: PAYE Procedures on November 24th, 2008

HMRC has made a change to its instructions on handling a P45 Part 3 that is provided by a new employee after the employee has completed a form P46 and the tax office has issued a P6 coding notice. The form should still be destroyed and none of the figures provided by the previous employer applied – but not before checking to see if the employee has an ongoing liability for student loan deductions. If so, deductions should be made from the next payday unless a stop notice has already been received. The student loan indicator is the only piece of information from a P45 provided in these circumstances that should be applied.