New pension to former employee - no form P45

If your new pension payment is to a former employee, but they don't have a form P45 from their most recent employer, you must:

• complete the "Pension recipient" and "About the pension/income drawdown/income withdrawal" sections of form P46 (Pen) and submit to HM Revenue & Customs (HMRC) - you must not give the form to the pension recipient to complete
• until you hear otherwise from HMRC, use the emergency tax code on a week 1/month 1 basis when operating PAYE on your payments to the pension recipient

Remember that if you have 50 or more employees, you must file form P46 (Pen) online.

If HMRC hasn't contacted you with a new tax code for the pension recipient by the end of the tax year on 5 April then continue to use the same tax code in the new tax year, with the following adjustments:

• apply the code on a cumulative rather than a week 1/month 1 basis
• make any adjustments to the code that are required by the P9X coding notice HMRC sends you in preparation for the new tax year

If the pension recipient gives you a form P45 after you've started paying their pension and after HMRC has provided you with a new tax code, then you must destroy the P45.

This content is subject to Crown Copyright

Source:

Business Link

Tags:

Contact Solicitors Now

Let the advisors at Contact Law, a service of FindLaw, guide you through the process of hiring a qualified solicitor to meet your specific needs:

• 5,000 solicitors objectively screened
• Secure and private service
• Expertise for your needs
• Contact Law is a service of FindLaw UK

Call 0800 1777 167