Is there a deadline for delivering a P45 to an employee?
When is the deadline for providing a P45 to an employee who is about to resign? This question came up recently because our client had just received one. He didn’t know what to do next. We asked him to send us his P45. After reviewing it, we found that he had submitted it too late. Our advice was simple: submit the form within seven days of the date of resignation. If you fail to do so, you risk losing the money you paid into the pension scheme.
The deadline for submitting a P45 varies depending on whether you are a member of a defined benefit scheme or a defined contribution scheme. In the former case, you must submit the form no later than 31 December. For those in defined contribution schemes, the deadline is 30 June. However, even if you are a member of either type of scheme, you still have a grace period of 28 days after the day of resignation during which you can submit the form.
In practice, the employer usually sends you a reminder letter informing you of the deadline. You can check the relevant section of the notice on the National Employment Savings Trust (NEST).
If you are unsure whether you have complied with the deadline, contact NEST. They will help you determine whether you have done everything correctly. If you think that you haven’t been compliant, you should ask your employer to pay you back the amount you contributed to the pension scheme.
You cannot claim back any contributions you make after 28 days. So, if you want to avoid paying penalties, you need to act quickly.
What is a P45?
A P45 is a document providing information about an employee leaving a job. This includes the reason why they left, how much notice they gave, what their salary was and how many hours they worked per week.
The form is used for both employees who work for themselves and those who work for someone else.
If you want to know more about a P45, check out our guide here.
When Should I give an employee a P45?
If you are required to provide an employee with a P 45 form, what happens if you fail to do so? You could face serious penalties.
The HM Revenue & Customs (HMRC) says it is important that employers ensure they comply with the rules around issuing P45 forms. This includes ensuring they know how long they have been working for the employer, whether they are entitled to receive one and if they have left employment, whether they need to give notice.
In addition, employers must keep records of all those people who leave or retire and make sure they are given a P45. They must also check that any person who leaves without giving the requisite notice is paid the correct amount of National Insurance contributions (NIC). Failure to do so could mean you are personally responsible for paying the NIC, plus interest and penalty charges.
Employers must also consider the circumstances surrounding the individual concerned and decide whether they require a P45. For example, someone who retires might not need one because they are no longer employed. However, someone who leaves to take up another job may well need a P45.
Can I email a P45 to an employee?
If you are about to send your employee a P45 notice, it is important that you do not forget anything. You could end up having to pay penalties to HM Revenue & Customs. Here is what you need to know:
The deadline to submit a P45 notice is midnight on Friday 31st March 2020.
You cannot send a P45 notice via email.
Your employer must give you a copy of the P45.
Your employer must keep a record of the date you received the letter.
Your employer must tell you how long you have got to complete the P45.
You must sign the P45 yourself.
You must include your full name, address, National Insurance Number, bank account number, and proof of identity. These documents must be kept safe and secure.
You must return the completed P45 to your employer within 14 days of receiving it.
If you don’t, you could face fines.
What happens to maternity, paternity, or adoption compensation that is required by law?
Statutory maternity, paternity or adoptive leave is paid for 12 months following the birth/adoption. However, it doesn’t matter how long you work for the company; employers are required to keep paying for this leave until the end of that period. If you resign before the end of the 12-month period, however, the employer no longer needs to pay for this leave.
The law applies to all employees working in Australia regardless of whether they’re employed full-time or part-time. Employees must take up to 12 weeks’ leave during each calendar year.
If you’ve been pregnant or adopted within the previous 12 months, you’ll receive additional payments for the duration of your pregnancy/adoption leave. These payments are calculated based on your annual salary at the start of the leave period. You must notify your employer about your pregnancy or adoption, and provide proof of the child’s or adoptee’s date of birth.
You cannot claim both statutory maternity, paternity or adoptive pay and parental leave entitlements. For example, you cannot combine your 12 weeks’ statutory maternity, paternity or adopting leave with your 12 weeks’ parental leave entitlement.
Frequently Asked Questions
Where can I get a P45 form from?
The UK government has launched a new online form where you can request a P45 tax document from HMRC. This is a form that allows people to request information about their tax affairs, such as bank accounts and investments. If you are self-employed, it is possible to apply for one of these forms without having to pay anything upfront. However, there is a fee involved if you do choose to make a payment.
If you want to find out how much you owe, you can use our calculator here.
You can access the form directly from the government’s website. You’ll need to provide some basic information like your name, address, and date of birth. After you’ve filled out the form, you’ll receive a confirmation email containing a link to download your P45.
What happens to statutory maternity, paternity, or adoption pay?
An employer must keep paying these benefits until the end of an employees’ statutory leave, even if she stops working for you. In addition, employers must continue to provide these payments while an employee takes unpaid parental leave. This includes paid maternity/paternity leave, paid adoption leave, and unpaid parental leave. However, there are some exceptions to this rule.
For example, if an employee is dismissed without notice, the employer does not have to make any further contributions to her benefit fund. Similarly, if an employee resigns, the employer cannot claim that the resignation was voluntary.
If an employee is dismissed because of misconduct, the employer is entitled to reclaim the contribution it had already made towards the employee’s benefit fund.
The amount of statutory maternity pay depends on how long the mother works during pregnancy. If the mother works less than 20 hours per week throughout her pregnancy, she gets £138.50 per week. If she works between 21 and 30 hours per week, she gets £145.80 per week. If she worked over 30 hours per week, her weekly payment rises to £153.30.
In addition, employers must continue paying statutory maternity pay up to 52 weeks following childbirth. They must also pay statutory paternity pay for 12 months following birth.
Further information about this topic can be found in the What to do when an employee goes part-time or retires section of GOV.uk.
To find out if you have the legal duty to contribute to your employees’ benefit fund, please consult your policy documents or contact your insurer. You can also use DAS Connect to quote and purchase our products.