What to do when an employee leaves

What to do when an employee leaves?

You should put the employee's leaving date on their payroll record and make deductions as normal when you send your next Full Payment Submission (FPS), unless you are paying them a company pension.

You must also give the employee a P45.

If you need to change something
If the employee left in the current tax year and you did not report it in the month they left, you must include them in the next FPS. You must also:
  1. show the leaving date
  2. add ‘0’ in the ‘Pay and tax in this period’ field
  3. add the last reported figures of pay, tax, National Insurance and other payroll information in the ‘Year to date’ field
  4. show the ‘Payment date’ as either the current FPS payment date or the last date the employee was paid
  5. add ‘H’ (correcting an earlier payroll report) as your reason for reporting late if the ‘Payment date’ you entered isn’t the current FPS payment date

If the employee left in a previous tax year, you should send either an:
  1. Earlier Year Update (EYU) for that year using your payroll software
  2. FPS for the current tax year showing the current FPS payment date and report the date of leaving
For additional information, refer HMRC in the following link https://www.gov.uk/employee-leaving

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