PART 3DEDUCTION AND REPAYMENT OF TAX

CHAPTER 2NEW EMPLOYEES (OTHER THAN PENSIONERS): FORMS P45 AND P46

Procedure in Form P46 cases: other new employees49

1

This regulation applies in any case which is not dealt with by regulation 47 or 48 which concerns an employee to whom regulation 46(1) applies.

2

On making the first relevant payment to the employee, the employer must—

a

send the Inland Revenue the completed Form P46,

b

prepare a deductions working sheet and enter both the total payments to date and the total tax to date before the first payment as nil,

c

deduct tax on the cumulative basis using the basic rate code.

3

On making any subsequent relevant payment before the employee’s code is issued, the employer must continue to deduct tax on the cumulative basis using the basic rate code.