We think that we can all agree that making sure your employees get paid correctly is a pretty important part of being a good employer! Ensuring they’re paid accurately not only saves you time and resources but also helps your employees pay the right taxes and National Insurance contributions, securing their entitlement to state benefits in the future.
However, knowing what information you need to gather from a new employee and how to process this information can be tricky. To help, we’ve put together this blog covering what documents you need to ask new employees for, and what to do if they can’t provide them.
What to do if your employee doesn’t have a P45?
Before we talk about what to do if your employee doesn’t have a P45, let’s first establish what a P45 is. A P45 is a document in the UK that provides details about an individual’s income and the taxes paid on it during their employment with a specific employer. When an employee leaves a job, their employer issues them a P45 form which they then give to their new employer.
All pretty important, right? So, what do you do if your employee doesn’t have a P45? In this case, use the starter checklist to find their starter declaration code and the appropriate tax code. This step is really important for accurate tax calculations, so make sure you carry it out correctly.
What tax code to use with starter declaration Code C
If the starter checklist indicates that the employee falls under starter declaration code C, use the tax code BR. If you are unable to complete the starter checklist and the employee doesn’t have a P45, put them on starter declaration code C and use tax code 0T. This ensures that the right amount of tax is deducted from their earnings.
What PAYE details do I need from a new employee?
Gather all the necessary information from the starter checklist, including their name, date of birth, and National Insurance number. You’ll need to double-check these details against their official documents such as a passport or driving licence, to avoid any errors or mix-ups. As all businesses will know, accurate records are essential, not just for payroll but also to protect your employees’ future benefits. By ensuring the information is correct, you’re helping to create a positive and secure environment for both you and your employee.
How to check if your seasonal or temporary staff are eligible for automatic enrolment into a pension scheme
When you’ve got seasonal or temporary staff on your team, it’s super important to know who needs to be enrolled in a pension scheme. Take a moment to assess each of your team members individually, this includes those with varying hours, be it for a few days or a few months.
Remember, not keeping up with your pension duties might lead to consequences like fines so it’s really important that you make sure you’re fulfilling your obligations to your staff members. You can find out who you need to enrol on the GOV website.
Help to Save Scheme
For those on a tight budget, the government’s Help to Save scheme is a fantastic option. This initiative, extended until April 2025, allows low-income earners to save between £1 and £50 per month. Participants receive a government bonus, making it an excellent way to boost savings effortlessly. To apply, individuals can contact HMRC or use the HMRC app to set up their Help to Save account online in less than 5 minutes.
Did you know that we can help you with your business’s payroll? We can even set up a payroll scheme for you and register it with HMRC! Contact us today to find out more about our services.