Real Time Information - Update February 2012
Under the new proposed Real Time Information (RTI) rules, HMRC originally proposed that the P45 form would be replaced with a leaver statement. Currently a P45 form is given to workers when they move to a new employer or lose a job. By law a P45 has to be issued, recording pay and tax deducted in the year so far.
Following the recent RTI consultation and discussion with employers and representative groups, HMRC has now decided to retain the P45 form for all employees.
Stephen Banyard, Acting Director General of Personal Tax said "HMRC have been working closely with employers and stakeholders about the introduction of RTI. Employers told us to keep the P45 – which is exactly what we have done."
We will continue to keep our website updated with developments on RTI as they occur. For further information on RTI or on any payroll matter please also contact Neil Cameron at neil.cameron@chiene.co.uk 0131 558 5800.