Following representations made by the RTI Customer User Group, HMRC have amended the guidance on the starter process.
Representatives have been explaining to HMRC that where a new employee had more than one job the ‘new’ guidance meant that they could end up with a BR code being applied at both jobs, instead of using codes which were more likely to produce the correct amount of tax payable over the year (eg one code which reflected their personal allowance at one job and a BR code at the other).
As a result of this HMRC have agreed to make some changes, that should help to increase accuracy for individuals with a P45 and more than one job.
In such cases, instead of selecting statement C and operating code BR, the employer should select statement B and operate the tax code on the P45 - unless the tax code on the P45 is BR, 0T or D prefix - in which case statement C would still apply.
Individuals without a P45, or with an old P45, will continue to complete the starter declaration to confirm their employment situation.
The full guidance on the starter process will be updated and available from 6 April 2013 in HMRC's guide 'Notifying and getting new employee information right' at http://www.hmrc.gov.uk/payerti/employee-starting/new-emp-info.htm
HMRC acknowledge that the starter process guidance had gone through several iterations and, for 2013-14, they have said that they will accept if your payroll software reflects an earlier iteration that does not follow this new process.