New Starter Checklist Interactive Guidance

New online interactive guidance has been developed and the New Starter Checklist form can now be filled in online.

The New Starter Checklist is an alternative method, in the absence of a P45, of providing HMRC with new employer details.

You can use the checklist if you: –

  • have a student or postgraduate loan,
  • your personal details are different to those shown on your P45,
  • you do not have a P45 or you have been sent to work temporarily in the UK by your overseas employer.

If a new employee has a P45 but also a student loan, they would also be required to complete a New Starter Checklist. This ensures that employers apply the most appropriate tax code so that the correct tax is deducted by HMRC.

The new online form allows a new employee to answer a series of questions and select the appropriate answers to their circumstances. This will produce a new starter declaration which can then be downloaded and emailed or posted to the employer. 

When the questions have been answered, the employee’s details will be displayed in a declaration. The declaration should be checked to ensure that the circumstances shown are correct. If they are not, you can check the answers and produce the correct declaration before you download it.

For those that require a print and post service, the New Starter Checklist has been amended to reflect the interactive guidance and can be printed from GOV.UK. You can find the checklist and guidance here.

HMRC hopes this interactive new starter checklist will cut down on errors.

One of the main causes of problems involving deductions of tax from salaries is the starter checklist not being completed correctly. Choosing the wrong employee statement (A, B or C) in particular. Nearly 3 million Real Time Information (RTI) submissions for new starters with discrepancies were received in 2021 to 2022. The new guidance will help avoid postage costs, incorrect tax being applied, saving employees and employers time and less contact with HMRC.

If you are currently using Sage 50 Accounts or Sage Payroll software, why not join one of our Sage Accounts Facebook Support Groups? You will be able to pick up advice and tips and if you’re not sure of anything you can ask one of our 2,000 members.

15.11.2022

“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”

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