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4555. Reporting P45 Leavers with Outstanding payments (Previous Tax Year). How?
 

There are 2 separate stages to process this particular type of leaver.

The first stage treats the leaver as if there was no outstanding pay due to the leaver and files the P45 under the EYU process with NO outstanding payment.

The second stage pays the leaver any outstanding pay using tax code 0T under the Former Employee Outstanding payment process.


Stage One - file the P45

Step 1: On the Employee menu select Leaver ( P45 ) Administration.

Step 2: Click the Process Leaver P45 link and enter the Leaving Date. The Leaving Date is in the previous tax year.

Step 3: Select the "Option 2 : No Outstanding Payment for Leaver...and click Continue button."

Step 4: Since the leaving date is in the earlier tax year, you must send an Earlier Year Update (EYU) for that year to report the date of leaving.

Refer to the HMRC link : https://www.gov.uk/employee-leaving.

Please note that an EYU for a previous tax year can only be submitted from April 20 onwards.
To e-File the Leaver's EYU, in the Employer's Declaration page enter your User Sign In Password and click Continue.

Step 5: Click on the Live e-Filing red button to submit your previous tax year leaver EYU information to HMRC.

Step 6: If any submission errors occur (Authentication Failure etc.), you can re-submit the leaver EYU by selecting E-file RTI FPS, EPS, NVR, EYU from the E-filing RTI menu.

Stage Two - process the outstanding pay

Processing of any outstanding payment to the leaver should only be done after you have successfully e-filed the leaver's P45 return.

Step 7: After the previous tax years leaver information has been successfully reported in the EYU, in order to make outstanding payments PAYE tax must be deducted using tax code 0T on a week 1/month 1 basis.

Refer to the HMRC link : https://www.gov.uk/employee-leaving.

You can amend the employee's Tax Code from Employee -> Former Employee Facilities -> Leaver Details View / Edit -> Tax Code Details View / Edit

Step 8: After amending the Tax Code, process the Former Employee's Payrun from : Payrun -> Former Employee Payrun -> Select Pay Frequency -> Save Data & Process Pay -> Continue -> Approve Pay Data -> Update YTD.

Step 9: Submit the EYU for this leaver by selecting E-file RTI FPS, EPS, NVR, EYU from the E-filing RTI menu.

Step 10: You can check the status of the e-filed EYU, the e-filed certificate & EYU report PDF from E-filing RTI -> E-filing Status -> EYU (Earlier Year Update).

Road Map for Processing P45 Leaver with Outstanding payments

Employee -> Leaver ( P45 ) Administration -> Select leaver -> Process Leaver P45 Link (Leaver date falls with in the previous tax year )-> Select "Option 1" -> Continue button -> Confirm Button -> E-File RTI Leaver FPS (P45) Data / E-File RTI EYU Data
( 'Employee' is the button positioned in the tasking zone menu at the top. It is the second button from the left)


Road Map for E-filing EYU to HMRC

Step 1: Go to the E-Filing RTI Menu in the tasking Zone and Select the Submenu "E-file RTI FPS, EPS, NVR, EYU"
Step 2: Click on the Earlier Year Update(EYU) link
Step 3: Current and Former employees details. Click on the 'Enter' Link.
Step 4: Enter the Difference value for the current tax year. Now click on the Save & Continue button.
Step 5: Now click on the confirm button in the appeared screen and, enter your name and the password you used for sign in to the application.
Step 6: Further click on the "Live E-Filing" button.

E-Filing RTI -> E-file RTI FPS, EPS, NVR, EYU -> Earlier Year Update(EYU) link -> Save & Continue button -> Confirm button -> Live E-Filing button
( 'E-Filing RTI' is the button positioned in the tasking zone menu at the top. It is the third button from the left)

Step 11: If you don't complete the Leaver P45 efiling or accidently go about removing the RTI Leaver FPS record for a employee, you can still complete the Leaver FPS efiling by following the below steps:

1) Employee -> Former Employee Facilities -> The column "Leaver FPS E-filed Status" indicates the e-filed status of Leaver P45. If e-filing is not completed, you will see the link "E-File Now !". Please click this link and continue to complete the leaver e-filing.

2) After a while, you can check the status of the e-filed Leaver FPS and see the e-filed certificate from E-filing RTI -> E-filing Status -> FPS (Full Payment Submission).

Road Map - To E-file the FPS to HMRC for a former employee.
Employee -> Former Employee Facilities-> Under Leaver FPS E-filed Status -> Click on the Link "E-File Now!".
( 'Employee' is the button positioned in the tasking zone menu at the top. It is the second button from the left.)

Road Map - To view the FPS E-Filed Status.
E-Filing RTI -> E-Filing Status -> Under Regular RTI E-Filing -> Click on the Link FPS (Full Payment Submission)
( 'E-Filing RTI' is the button positioned in the tasking zone menu at the top. It is the third button from the left.)