As in all sectors, administrative hiccups or inconveniences can sometimes arise, and a missing P45 is one that can cause confusion. This document is crucial for ensuring the correct tax code is applied.
For educational agencies recruiting supply teachers, employment schedules can get a bit more complex due to the flexible and temporary nature of the job. There’s then increased risk of a missing P45.
But don’t worry… there are straightforward steps to handle this situation effectively.
Why is a P45 important?
A P45 is a form that details how much tax an employee has paid on their salary so far in the tax year. When a supply teacher starts a new job, their previous employer should provide this form. It helps the new employer apply the correct tax code, ensuring the supply teacher pays the right amount of tax from the start.
Reasons why a supply teacher might not have a P45
There are several reasons why a supply teacher might not have a P45 when they start with a recruitment agency. They might be entering the workforce for the first time, in which case they wouldn’t have a previous employer to issue a P45.
Alternatively, they could be taking on a second job alongside their main employment, meaning their primary employer retains the original tax code and tax free allowance.
Understanding these scenarios helps you provide the right support and ensures a smooth onboarding process for your supply teachers.
What to do if there’s no P45
Your supply teacher may not have a P45 when they start with you. This could perhaps be because they are starting their first job, taking on a second job, or their previous employer hasn’t provided it.
Here’s what you can do in case any of the above apply to your new employee:
- Complete a new starter checklist
The new supply teacher should fill out a New Starter Checklist (previously known as a P46). This form collects essential information such as other jobs, benefits, and student loans, which helps determine the correct tax code. - Apply a Basic rate or 1257L Week 1 tax code
Initially, you might need to apply a Basic Rate or 1257L Week 1. This ensures the teacher is taxed at a basic rate until the correct tax code is established. While this might result in slightly higher tax deductions initially, any overpaid tax will be refunded once the correct code is applied. - Communicate clearly
Keep the supply teacher informed about the process. Explain why the initial tax code is necessary and reassure them that any discrepancies will be corrected. Clear communication helps alleviate any concerns they might have about their pay. - Follow up
Ensure that the correct tax code is applied as soon as possible. This might involve liaising with HMRC or the teacher’s previous employer. Prompt action helps avoid prolonged periods of incorrect tax deductions.
Final thoughts
Handling a missing P45 doesn’t have to be a daunting task. With the right steps and clear communication, you can ensure your supply teachers are taxed correctly and feel supported.
For more detailed information, you can refer to the official gov.uk guide on late P45s.