Posted: Mon Apr 03, 2006 11:54 am Post subject: Employees criteria for P38A
P38A has the following criteria for employees .
Quote:
Workers for whom you have not completed a form P14 or a form P38(S) for the year 6 April 2005 to 5 April 2006
but according to my knowledge all the employees must be listed in P14 .so no employee is left for P38A .
Please tell the mistake in my understanding of P38A criteria.
From the instructions given on the front of form P38A, you can see that there are some circumstances in which employers are not "required" to submit a P46.
If you look in the E13 Helpbook, it explains that, if an employee ticks boxes A or B on form P46 but does not earn over the LEL, the employer may retain the P46 for as long as the earnings stay below the LEL. At the year-end, no P14 is required, only a signature on P38A confirming that the conditions have been met for those employees for whom the employer is still holding a P46.
Most employers with computerised payroll systems ignore this procedure (which is designed to make things easier for employers with manual payrolls) and send in a P46 for every employee, irrespective of the earnings, and then file a P14 for all employees, even if they have no tax or NICs to report. HMRC are quite happy with that situation.
The reverse of form P38A has some other uses, mainly for casual workers who are engaged for no more than one week and whose earnings are low. _________________ Ian Congreave, PayPerShop owner
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