First Full Payment Submission for new starters: the importance of using the correct employee addresses

NB HMRC originally published an article in the June 2022 Employer Bulletin with incorrect guidance around what to do when receiving a late P45.

When completing the first Full Payment Submission for new starters, it is important that employers obtain and enter the employee’s correct address and postcode and use the employee’s P45 information to record their previous pay, tax and student loan (if applicable). If the employee does not have a P45 you can use the following starter checklist for PAYE.

If you use the starter checklist to add the employee onto your payroll records and you receive the P45 after you have received a tax code from HMRC, you do not need to update the previous pay, tax, or tax code on your payroll software, only update student loan details (if applicable).

Using the correct postcode and address is important because HMRC uses the postcode to verify the employee’s address. If you enter an incorrect address or postcode this could result in the employee’s address being changed on our systems leading to correspondence being issued to the wrong address. An incorrect address held on HMRC’s systems may also affect the Department for Work and Pensions ability to process Universal Credit claims and issue correspondence to claimants.

For further information visit Tell HMRC about new employee.