Skip to main content

The process of gathering new employees’ essential information can sometimes become very time-consuming for companies. To streamline this and make it as efficient as possible, HMRC has laid out some straightforward guidance that can assist companies to collect accurate details, ensuring that new starters receive the correct pay.

This guidance is not just for companies; it also benefits employees by ensuring they pay the correct tax and National Insurance contributions, safeguarding their entitlement to state benefits in the future.

Here are HMRC’s top tips for companies taking on a new employee:

  • Action to Take When an Employee Lacks a P45:  If your new employee doesn’t have a P45, you can use the starter checklist to identify their starter declaration code and the appropriate tax code.
  • Tax Code to use for Starter Declaration Code C:  If the starter checklist results in the employee being placed under starter declaration code C, you should apply the tax code BR. If, for any reason, you’re unable to complete the starter checklist and your employee lacks a P45, you can put them on starter declaration code C and use the tax code 0T.
  • Required PAYE Details from New Employees:  You will need all the details outlined in the starter checklist, including their name, date of birth, and National Insurance number. It’s essential to verify the accuracy of this information by cross-referencing it with their official documents.

Ensuring these steps are followed correctly can save your company valuable time and resources. It can help in avoiding the need to answer employees’ queries on their pay.

If you need support regarding new employees or would like CB Reid to run your company’s payroll, please don’t hesitate to contact a member of the CB Reid team. We have a dedicated Payroll team to assist you.