When someone starts their first job, they normally don’t have a P45 with their tax code on it. The new employer needs another way to decide which tax code and student loan deductions to apply. HMRC publishes a form for this purpose, but using it can trigger as many questions as answers.
I wrote about some of the pitfalls of the HMRC starter checklist in a recent article in the magazine of the Chartered Institute of Payroll Professionals (CIPP). You can read my article on page 27.
At The Payroll Site, we have created an alternative version of the starter checklist which we think is easier for both employee and employer. You can find our alternative starter checklist here.