P45 Issue

November 2025

What was the issue?

When an employee was marked as a leaver outside the normal payroll cycle and their P45 A P45 is a document issued by an employer to an employee when they leave a job. It shows details about the's employment, including their start and end dates, how much they were paid, and how much tax they paid during their employment. The is made up of four parts: Part 1 is sent to HM Revenue & Customs (HMRC), Part 1A is kept by the employer, and Parts 2 and 3 are to the employee as a record of their earnings and tax paid. The P45 is an important document that employees need to give to their new employer when they start a new job as it provides information about their tax code and previous earnings, which helps the employer calculate their tax and National Insurance contributions. was emailed to them, they were not included in the next available Full Payment Submission Full Payment Submission is an RTI online submission to be sent on or before each payday. This informs HMRC about the payments and deductions for each employee. (FPS Full Payment Submission is an RTI online submission to be sent on or before each payday. This informs HMRC about the payments and deductions for each employee.) with their leaver status.

How does this affect employees?

Because HMRC His Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers. didn’t receive the employee’s leaving date, their new employer may need to place them on a BR (basic rate) tax code for up to three months, until HMRC automatically closes their previous employment record.

If the employee is marked as having an irregular payment pattern An RTI employer can set the Irregular payment pattern indicator on an employee’s FPS to indicate that payments will be made to the individual on an ‘irregular’ or infrequent basis. The setting of this indicator will stop the automatic cessation of the individual’s employment record should the employer stop sending FPS for a period of time., HMRC won’t close the record automatically.

What do I need to do?

There is no action required on your part. If you or your employees were affected, these leavers will automatically be included in the next available FPS submission. This will update HMRC with the correct leaving date and resolve any associated tax code issues.

As a result, you may notice historic leavers appearing in your next payroll run. If your payroll is already open, these employees will be included in the RTI Real Time Information is the current method for reporting PAYE to HMRC, comprising FPS and EPS submissions. to ensure the updated records are sent to HMRC in the next FPS.

If you prefer to exclude these leavers from being reported to HMRC, you can mark the employee as ‘On Hold’ within their employee record. This will remove them from both the payroll run and RTI submissions.