In-year e-filing Mandatory PAYE in-year online filing of starter and leaver information (Forms P45 (Parts 1 and 3) and P46) will take effect from: April 2009 for employers with 50 or more employees; and April 2011 for small employers with fewer than 50 employees Employers are not required to wait until April 2009 before submitting in-year data online. They may do so at any point in the time leading up to the mandatory change. HMRC will introduce, by April 2009 at the latest, an updated form P45 (all parts) to incorporate the individual’s date of birth and gender. This information, provided on online submissions before 2009, will help reduce matching queries to employers. From 6 April 2008, where the employee has not provided the relevant data at the time the P46 has to be submitted to HMRC (when earnings exceed the lower earnings limit in statement A or B cases), the employer will be required to complete the employee section. In-year forms can be sent online from any number of locations. Employers may want to consider what, if any, changes are likely to be required to specific software where starter and leaver information is handled by various departments. Common errors that employers must avoid when submitting in-year data to HMRC are: P45(1) with no leaving date; P45(1) showing a cumulative tax code but no total taxable pay details; P45(1) showing a non-cumulative tax code but no pay details; P45(3), with no date of starting; and P46 where no statement is ticked. If an employer sends HMRC starter and leaver information on paper after the mandatory filing deadline, this will be processed to ensure that the employee (individual taxpayer) isn’t inconvenienced by any error the submitter makes. However, the employer will face a penalty. Paul Tew, Pay Magazine Snowdrop provides a range of Payroll solutions that are fast, flexible and easy-to-use, to suit the many and varied needs of each organisation. To find out more about the software and services that we provide, please click here >>