No starter declaration received in time for a new employee?s first FPS

25 June 2015

Using an incorrect PAYE tax code and starter declaration code for new employees may cause an automated PAYE tax code to be sent which then has to be corrected, often by the employee contacting HMRC.

It is very important to have a starter declaration completed for the first Full Payment Submission (FPS).

HMRC’s June 2015 Employer Bulletin highlights that using an incorrect PAYE tax code and starter declaration code for new employees may cause an automated PAYE tax code to be sent which then has to be corrected, often by the employee contacting HMRC.

Incorrect tax codes can lead to your employee paying more tax than is due so HMRC have developed a new online tool to help you or your payroll provider get your employee’s tax code and starter declaration code right first time.

If it has not been at all possible to obtain a starter declaration for the new employees first FPS, then use starter declaration code C with PAYE tax code 0Tx (week/month one basis). For the next FPS, provided you have not received a P45 from the employee or P6 from HMRC, update your payroll records based on the starter declaration.