Employees starting and leaving ― payroll consequences

Produced by Tolley in association with

Employment Tax

Guidance

When a new employee starts with an organisation, the employer needs to obtain several pieces of information to ensure the employee is set-up correctly for the purpose of paying on time and accurately. This means obtaining information that will:

•
set the employee up on the employer’s payroll system
•
set the employee up on HMRC’s systems, indicating that there is employment
•
getting the tax code correct, and
•
ascertaining whether there is a student loan that needs to be repaid

At this stage, assume that the necessary pre-employment checks have been made. Pre-employment checks are not a direct payroll responsibility and should have been undertaken at the interview stage. These checks are to establish a prospective employee’s right to work in the UK under the Immigration, Asylum and Nationality Act 2006. See the Checking the employee’s right to work guidance note.

The basic employee details needed are:

•
name ― the full forename(s), ie James not Jim and surname
•
date of birth
•
address and postcode. Note

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Ian Holloway

Payroll and Reward Consultant , Employment Tax, Personal Tax

Ian has been in the payroll profession for over 30 years, processing payrolls from all sectors, large and small. He moved from hands-on exposure in 2011 to become involved in educating the profession. His wide-ranging experience and up-to-date knowledge ensures he can impart this information to UK professionals through course material, social media, newsletters and face-to-face presentations.However, educating the profession cannot be achieved without knowing how the profession works on a day-to-day basis and involvement with hands-on administration is essential. So, today, Ian operates as a consultant and advisor and is involved with a vital aspect of the payroll and reward environment, that of working with the software that does a lot of the hard work for the profession.The return to being involved in a hands-on environment has not stopped his desire to inform, educate and train the UK payroll profession. Indeed, this is now better-achieved, as he can draw on real processing situations.Ian approaches education and communication very much from the perspective of how this will impact the software, the employer and the worker. So, whilst the legislation is vital, compliance and effective communication are paramount.Ian is Companion of the Institute for Certified Bookkeepers (ICB), committee member of the British Computer Society (BCS), a committee members of the ICAEW’s Tax Faculty and a Fellow member of the Chartered Institute of Payroll Professionals (CIPP).

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