If you do not give sufficient information to your employer to complete a the Starter Checklist, then your employer will use a code 0T. For a basic rate taxpayer, this will produce the same result as a BR code, but for higher and additional rate taxpayers, the 0T code will ensure that they are taxed at these higher rates.
Pay As You Earn (PAYE) form – starter checklist
If you are starting a new job and do not have a form P45 from a previous employer or the Department for Work and Pensions, your employer should ask you to complete a starter checklist. This might be the case if this is your very first job, or if you have not worked previously during the tax year, or you have misplaced your form P45.
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Have you recruited a new member to your team or even more excitingly your first employee? Well congratulations! You may now be thinking about what you need to do as an employer to get them on board and to ensure you are legally compliant. Here’s our handy new starter checklist taking you through the steps you need to complete:
The New Starter Checklist – Same game as P46, new rules
The data items; “Living in UK for 183 days or more”,“Living in UK for less than 183 days”, “Employee Working both in and out of the UK but Living Abroad” and “Indicator of European Economic Area citizen” must be left blank unless the employee is seconded to you from an overseas employer.
Video instructions and help with filling out and completing hm revenue starter checklist sample
Do not send a printed copy of the starter checklist to HMRC; it’s for the employer’s internal use only. Where a Starter Checklist is completed, employers are advised to keep the form for the current and previous three tax years.
HMRC Starter Checklist when returning to the UK
In the past, not having your P45 to hand upon taking on new employment could be a real headache, but as of 8th April this year the government have introduced an updated version of their Starter Checklist – in order to try and help ease the transition further for both employer and employee.
When you start a new job or start to get a pension, your employer or pension provider needs to know your tax code. If you were given a form called a P45 from a previous job in the same tax year, your employer will use the information on this to deduct the right amount of tax. If you were unemployed and getting Jobseeker’s Allowance(JSA) or contributory Employment and Support Allowance (ESA), you should give your new employer the form you were given by the Jobcentre Plus. This form is called a P45U if you were getting JSA or a P45ESA if you were getting ESA.
Job application forms
In the event that employers do get the Plan type wrong, there is the comfort that HMRC will send through a SL1 on receipt of the first FPS that contains a Loan deduction. If the Plan type stated on the SL1 is different from the Plan type being operated, the action for employers is to change the payroll in accordance with HMRC’s instructions.