Managing “Leavers with no pay” under RTI

Here’s another new submission you now need to make under HMRC RTI for those who “leave without pay”.

If you have a type D leaver (left with no pay), then you must Submit a “specific employees FPS” for these leavers in addition to the regular fps. These employees are listed on the calculation report.

As standard, the FPS only contains employees that have been paid, so HMRC are not informed that they have left if there is no pay.

HMRC will assume they have left if the employee does not appear on a FPS for 3 months but, if the employee has been marked as having an Irregular Payment Pattern, it could be even longer before HMRC assume they have left.

This could result in them being issued a “BR” or “0” code and paying additional tax.

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