I have a client who has got into a mess with their wages. They haven't filed the new starter details for a lot of employees (its an umbrella payroll company). The client receives the P46 from the agent when first payment is due. The P46 though (issued by the agent) has been completed by the employee sometimes months before the first paydate. The P46 is signed by the employee in the 2010/2011 tax year.
When I come to file the P46 online, I have changed the tax year to 2010/2011 and inserted the details. But because todays date is within 2011/2012 tax year the tax code shown by HMRC is still showing for 2011/2012 tax year. Is there any way of getting it to submit the correct tax code for 2010/2012?
E.g. Contractor signs up with an agent in Dec 210, fills out a P46. No work is received for the contractor until March 2011, hours and P46 are sent by the agent to the umbrella company. The Umbrella company needs to file the P46, the contractor (now employee) has ticked box B and dated it Dec 2010. The P46 is filed under the 2010/2011 tax year, but the code shown is 474L Wk M1 (but for 2010/2011 tax year it should be 674L Wk1 M1).
If I submit these P46's, is it going to cause a problem?
I think I may just have to make sure that the tax code is correct on the current tax year software for each individual and file the P14's for 2010/2011 and let HMRC raise any queries as necessary. Its like opening a can of worms!
Take a look at his link: http://www.hmrc.gov.uk/paye/payroll/year-start.htm (you may have to cut and paste it)
It says that the the new empergency code is 747L - so this is the code you should use for any employee with you from 06 April 2011 unless HMRC tells you otherwise.
You will find HMRC will presume you are using this tax code if you submit the P46's.
-- Edited by YLB-HO on Thursday 14th of April 2011 01:21:16 PM
Hi thanks for the reply, but the issue is regarding the late submission. The P46's would have initially say created a 647L Wk1 tax code in 2010/2011, but when you input the P46 on the HMRC website its says the code for 2010/2011 is 747L Wk1! So if I was to click submit the HMRC would receive the wrong codes relating to 10/11.
Anyway, after much too and throwing I contacted the HMRC and the girl on the technical helpline for online filing (who didn't even know what a P46 was!!) thinks that there is a fault on the website. So at the moment I can't submit the P46's.
I was hoping that they would allow just the P14's to be done without having to go through all the P46 submission, but they said it needs to be done because it will cause errors on their side! And to top it all off I have just found out that P45's were printed and sent to employees, but not filed online.. so I have a lot of backlog to do!
