Starter checklist for new employees
When a new employee does not have a P45, HMRC advises that they should complete a starter checklist for new employees. This ensures they are placed on the correct tax code from the start, preventing unnecessary payroll adjustments later.
The starter checklist replaced the old P46 form, making it the standard method for new employees to provide tax information if they cannot supply a P45.
When Should a Starter Checklist Be Completed?
Employers should ensure that the starter checklist for new employees is completed before the first payroll submission to HMRC. Doing so helps:
- Avoid incorrect tax codes, which can lead to overpaid or underpaid tax.
- Prevent payroll corrections later in the year.
- Ensure compliance with HMRC guidance.
Employees must provide accurate information to avoid being placed on an emergency tax code, which could result in higher-than-necessary deductions from their pay.
Important Reminder: Do Not Send the Checklist to HMRC!
Although the starter checklist for new employees is essential for payroll processing, it must not be sent to HMRC. Instead, employers should retain the completed form for their records and use the information to process payroll correctly.
How We Can Help
At Lewis Brownlee, we assist businesses with all aspects of payroll compliance, including handling new employee tax codes and ensuring correct payroll submissions. Our services include:
- Payroll setup for new employees.
- Ensuring accurate tax coding to avoid issues.
- Compliance with HMRC payroll requirements.
If you need expert payroll support, contact us today via our contact page to ensure smooth onboarding for your employees. Plus, be aware that we do offer a free introductory meeting. These are specifically designed for you to find out what we do and how we do it. So, you have nothing to lose by finding out, free of charge, before you commit.
Getting payroll right from day one avoids unnecessary adjustments and ensures new starters are paid correctly!