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06 Feb 2012
THE TAXMAN has decided not to scrap P45 slips after employers said they wanted to keep them.
HM Revenue and Customs (HMRC), which is modernising the Pay As You Earn system, had planned to replace the forms for when employees move jobs with a "leaver statement".
Further reading
Under plans for "real time" PAYE, employers will send information about tax and national insurance deducted from employees' wages to HMRC when they are made - rather than at the end of the tax year as happens now.
A trial of the real-time information system starts in April.
Colin Ben-Nathan, chairman of the employment taxes sub-committee, at the Chartered Institute of Taxation, said the decision to keep P45s was "sensible".
The removal of the requirement to provide a P45 may have confused employers, employees and even government itself, Ben-Nathan said.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
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