Entering P45 details/new starters
From Catalyst
Contents
Summary
This article explains how to enter P45 details or a P46 New Starter declaration into the Payroll system.
 | You should always enter a P46 if you do not have a P45. |
 | If you enter a P46 you may then receive previous pay information at a later date via a P6 from HMRC. If so the pay and tax to date you later receive should be entered as a "Previous" adjustment. The lower half of this article explains how to do this. Please note this option will only appear if you have entered a P46. |
More Information
Please follow the latest HMRC rules for new starters regarding which Tax Code and NI letters to use. See the HMRC publications and website for any statutory changes that they may make or contact HMRC for advice if you are unsure.
Go to " Payroll Run Payroll Period".
- Log into the payroll as usual then find the employee in the list.
- Press <F8> to post an Adjustment Entry.
- You will be asked for the type of Adjustment to enter, this depends on the employee's circumstances:
Employee with form P45
If your new starter has a current P45 from their previous employer (from the current tax year):
- Click [P45] to enter the P45 details.
- Enter the required information into the box that pops up.
- Click [Continue].
 | If you see ""An item is missing or incorrect"" at this point, check that the "Leaving Date" on the P45 is before the "Start Date" on the employee record. You should check the actual leaving date with your new employee, or amend the "Start Date" on the employee record as appropriate. |
- A summary of the P45 information is displayed on screen.
- Check the information.
- Click [OK] and the information will be saved. It will be filed on-line with HMRC once you close the employee's first pay period.
Employee without form P45
If your new starter does not have a P45 from their previous employer, or it is not from the current tax year:
- Follow the guidance from HMRC on new starters. You should ask your employee to complete a starter checklist. This replaces the old P6 form.
- Once they have returned the form to you repeat the steps above to start posting an adjustment.
- Click [P46] to enter the P46 new starter declaration.
- Tick the relevant boxes depending on the employee's circumstances - and click [Continue].
- A box of information appears summarising the P46 information. Check the information.
- Click [OK] and the information will be saved. It will be filed on-line with HMRC once you close the employee's first pay period.
| If the employee hands you a P45 or you receive notification of previous pay from HMRC you should follow the steps below to add these figures to the payroll system. |
Updating Previous Pay Details
- Go to " Payroll Run Payroll Period".
- Select the correct pay period from the selection.
 | 'Monthly' or 'Weekly'. |
- Move to the employee in question.
- Press <F8> to post an Adjustment Entry.
- Select [Previous].
- Enter a date from those shown in the brackets.
- Enter a "Comment" of 'P45 Details'.
- At"Pay" enter their Gross Pay to Date.
- At"Tax" enter their Tax to Date.
- Click [Done] and [Accept].
- Check their "Tax Code" is correct and that they are no longer on "Week1/Month1".
HMRC Starter Checklist
The HMRC also provides a PDF document to help you collect the required information for a new employees. Click HERE to download this document from the HMRC website.
FAQS
- Q. If a previous employee returns to work can I re-use their old employee record?
- A. You should not re-use their record as this would affect the pay and tax calculations for the current year. Instead you should add them as a new employee and enter their P45 or P46 details as with any new starter. Do not enter any dates in the pension settings but instead allow the system to assess and re-enrol them into the auto enrolment pension scheme.
- Q. I have created a new employee but they are not appearing in the Run Payroll option?
- A. When creating a new employee the system will automatically place them on hold to prevent them appearing in the current open period. When you are in the first period in which you intend to pay them, go into their record and change the "Payroll Hold?" flag on the [Employment] tab to 'No'.
See also
- How do I create an employee in the payroll?
- How do I run a payroll period?
- How do I close a payroll period?
- How do I change a tax code?
- How do I add a payroll leaver?
