Leaver declaration on FPS

Question asked by Helen Stephens 8 years ago

Hi,

I had marked two employee's as leavers on this months payroll, from company 'A', however, it did not state that I had two leavers on the FPS to the HMRC. Both of these employee's had no salary calculated for the month as I had been asked to transfer them to a subsidiary company, company 'B' payroll, (still within Clearbooks). I have set them up under company 'B' payroll with the information provided on their P45 from company 'A', but would like to know why they were not shown on the FPS - will I have the HMRC knocking at the door??

Many thanks Helen

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3 Replies

What John said.

It's a bit of a flaw in the system but you have to process them with zero pay for the period. I believe you also have to mark the leaving date AFTER you're done processing.

The downside to all of this is it can then result in a tax rebate for the employee - I usually get round it by changing the tax code to W1/M1.

All a bit of a faff really but that's the workaround as it stands.

Best answer
8 years ago

Hi Helen,

HMRC probably will query this - if no payment was made during the period that they left from company A then you can calculate the pay with 0 basic pay - this should trigger an FPS with a declared leaver.

8 years ago

What John said.

It's a bit of a flaw in the system but you have to process them with zero pay for the period. I believe you also have to mark the leaving date AFTER you're done processing.

The downside to all of this is it can then result in a tax rebate for the employee - I usually get round it by changing the tax code to W1/M1.

All a bit of a faff really but that's the workaround as it stands.

Best answer
8 years ago

Many thanks for answering my query - I will make a note to mark any future leavers, without pay showing, to zero before running their P45. I did call the HMRC and they were happy with my explanation!

Many thanks again, Helen

8 years ago

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