A clarification on completing Employer Alignment Submissions and Full Payment Submissions has been issued by HMRC say Northampton chartered accountants Harris & Co.
It says issues affecting an employee’s tax code arise where an employer:
•has submitted only part of their employee payroll on their Employer Alignment Submission (EAS) and subsequently includes the remainder of their employees on a subsequent Full Payment Submission (FPS), or
•submits their EAS in parts, but does not indicate on the first EAS that they will be submitting in parts, HMRC treats the first part as the full alignment submission, or
•uses their first FPS to align (rather than an EAS) and does not include all employments on that first FPS
Once alignment is complete, any live employments not included by the employer will be ceased with a date of leaving of 5 April 2013.
HMRC have identified that when an employer sends a subsequent FPS, HMRC will create a new employment. That new employment record will not contain any benefits from the individual employee"s tax code. Therefore, the tax code that is issued for the new employment will be incorrect.
Employers should not operate the incorrect codes and should continue to use the previous code in such instances.
If an employer or an employee receives a tax code where the benefits have been removed, they should get in touch with HMRC to get the benefits re-instated and the code corrected.
More details are available from HMRC.