Hi
At the present time the mechnical company i work for are employing a lot more people. For some reason a lot of these new workers don't have P45's as they say they were self employed before.
How do i inform my tax office these people are now working at my company?
How do i determine their tax code?
Many thanks
Tax code procedure
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Tax code procedure
by Carlo80 » 17 Oct 2007, 08:40
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Tax Code Procedure
by Ian Whyteside » 17 Oct 2007, 14:10
Carlo,
Sounds a bit fishy to me having so many claiming to have all been self employed. I can understand this in the constructon industry where there has a been a bit of a wholesale change, but not mechanical.
Nevertheless the situation is the same, if they don't have a P45 get them to complete and sign a P46, quickly! Don't take no for an answer.
The rules are simple, there are only 3 boxes and a different code applies to each one, if they tick A its 522L, tick B its 522L Week 1 and if they tick C its BR. Tick more than one box, tick none, fail to sign it or refuse to complete one and its BR.
Go to www.hmrc.gov.uk/employers/taking_on.htm for all the details.
The most important advice any of us can give is never allow 522L as an interim measure because they have promised to give you the P46 as soon as possible. The code is BR unless the P46 suggests otherwise and it is a rule you should never break.
Ian Whyteside
Sounds a bit fishy to me having so many claiming to have all been self employed. I can understand this in the constructon industry where there has a been a bit of a wholesale change, but not mechanical.
Nevertheless the situation is the same, if they don't have a P45 get them to complete and sign a P46, quickly! Don't take no for an answer.
The rules are simple, there are only 3 boxes and a different code applies to each one, if they tick A its 522L, tick B its 522L Week 1 and if they tick C its BR. Tick more than one box, tick none, fail to sign it or refuse to complete one and its BR.
Go to www.hmrc.gov.uk/employers/taking_on.htm for all the details.
The most important advice any of us can give is never allow 522L as an interim measure because they have promised to give you the P46 as soon as possible. The code is BR unless the P46 suggests otherwise and it is a rule you should never break.
Ian Whyteside
Ian is the owner and Director of the Management, Payroll & Training Co. Ltd. which specialises in transforming payroll services and testing compliance and tax partner in the accounting and tax practice The Lime Partnership. He is an experienced writer and trainer for several recognised training bodies.
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Ian Whyteside - PayPerShop Guru
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by Carlo80 » 18 Oct 2007, 09:31
Ian, thanks for the advice much appreciated.
When i say mechanical i basically just mean plumbing and air con installation. Mechanical engineering sounds much more technical and important
I have been giving the new employees the tax code 522L (which would've been correct if i had done the P46 forms
) but i know now that no P45 or incomplete P46 = BR
When i say mechanical i basically just mean plumbing and air con installation. Mechanical engineering sounds much more technical and important
I have been giving the new employees the tax code 522L (which would've been correct if i had done the P46 forms
) but i know now that no P45 or incomplete P46 = BR- Carlo80
- PayPerShop Newbie
- Posts: 4
- Joined: 17 Oct 2007, 08:36
3 posts • Page 1 of 1
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