P46 statements
Summary
Description
The P46 statement selected by the employee determines which tax code you use until you receive the employee's P45, or P6 from HMRC.
For further information about the P46 form, please refer to the section Taking on a new employee - A new employee doesn't give you a form P45, within HMRC Employer Helpbook Day-to-day payroll - E13.
For information about other types of Starter Checklist or P46 forms, please refer to the HMRC website:
- P46 (Car) - P46(Car) - Car provided for the private use of an employee or a director
- Expat starter checklist - Expat Starter Checklist - for employees seconded to work in the UK by an overseas employer
You can enter the P46 statement when you're setting up an employee record or, if the employee's already created, in the employee record. Read more >
Resolution
Sections of a P46
Form P46 is in two parts. Section one is to be completed by the employee and section two is to be completed by the employer.
Section one
| Your details | This records the details of the employee's national insurance (NI) number, name, gender, date of birth and address. |
|---|---|
| Your present circumstances | The employee must select the relevant statement. For more information about the statements, please refer to the Explanation of the P46 statements section below. |
| Student Loans | If the statement here applies, the employee must select box D. |
| Signature and date | The employee must sign and date the form here. |
Section two
| Employee's details | You must enter the employee's start date and if applicable, job title and works number, payroll number or department. |
|---|---|
| Employer's details | You must enter the PAYE reference number, name and address. |
| Tax code used | The statement the employee selected and the tax code you have used must be entered. |
Explanation of P46 statements
When the employee completes a P46, they should choose at least one statement from A to C and, if applicable, statement D. This determines the tax code the employee is assigned.
When setting up an employee with a P46 in Sage 50 Payroll, the tax code is automatically assigned according to which statement is selected.
| Statement | Tax code |
|---|---|
| Statement A | Emergency code |
| Statement B | Emergency code on a Week 1/Month 1 basis |
| Statement C | BR |
| Statement D | Continue student loan deductions This statement is not available on the Starter Checklist. |
| No statement chosen or statement not signed | 0T (zero T) on a Week 1/Month 1 basis |
Enter information from a Starter checklist or P46
If a new employee doesn't give you a P45 from their previous employment, you must ask them to complete a Starter Checklist. You can enter the information from the Starter Checklist into Sage 50 Payroll, and the new employee's details are included in the Full Payment Submission (FPS). Enter information from a Starter Checklist or P46 >
Wrong statement selected
If you've added a new employee and set the wrong statement, their tax code may be incorrect. Contact HMRC to check if you need to change the tax code ongoing, or if you need to reprocess any periods where the wrong tax code was used. If you do need to reprocess, follow our correct a previous payroll run guide.
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Solution Properties
- Solution ID
- 200427112430198
- Last Modified Date
- Tue Feb 27 15:52:44 UTC 2024
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- 0