An employee leaves their main job If an employee leaves their first or main job, that employer should process them as a leaver as usual. They issue a P45 and inform HMRC. Your employee has another job, which is their main job In their employee record, in Previous Tax Details - Set the Starting Basis as Employee declaration: P46 - Select category below.
- Set the Circumstances section as C.
- Within Current Tax Details, set the Tax Code as BR.
- Put a tick in the Week1/Month1 box.
- Select Save.
You do not require a P45. You do not need to contact the other employer. If your employee lets you know that their main job is now with you If the employee gives a copy of the P45 to you, you should not action this, but wait for the P6. Keep the employee on a BR tax code until advised by HMRC. To speed up the process, you can contact your local tax office and explain the circumstances. An employee leaves their second job but retains their main job When someone has a main job and a second job, their second job should have a tax code of BR (Basic Rate). If they leave their second job, that employer should make them a leaver in payroll as usual. Issue a P45. If your employee lets you know that their only job is now with you If the employee gives a copy of the P45 to you, you should not action this, but wait for the P6. Leave them on their current tax code until advised by HMRC. To speed up the process, you can contact your local tax office and explain the circumstances. An employee’s main job becomes their second job An employee may sometimes take on a new main job but remain employed in the old job in a limited capacity. If your employee lets you know that their job with you is now their second job You should not create a new employee record for this employee. Your business still employs them. Process the employee’s pay for their new working hours.  NOTE: You may receive a different tax code for the employee.
A new employee gives you two P45s If someone gives you two P45s, you should use the P45 with the latest leaving date. If they show the same dates, use the P45 which shows the highest earnings or code. If in doubt, please contact your tax office. Read Tell HMRC about a new employee for specific advice. You can find more information on starters and leavers in our article Employees. [BCB:299:UKI - Personal content block - Dane:ECB] [BCB:304:UKI - Search override - Payroll UK:ECB] [BCB:276:UKI - hide back button:ECB]
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