P45 instead of P60?

[iloveapex]

I've worked for the same company for 33 years, kind of. 33 years continuation of service. Basically regional electricity company which has gone through many changes and ownership over the years with our contracting division being renamed and rebounded over the years.

 

Recently, we have been informed of big changes involving new investors and a change of payroll office. We have been told our terms of employment will be remaining the same but as we are moving to a different payroll office or system, instead of getting a P60, we will instead be receiving a P45! Alarm bells ringing, is this normal/allowed/legal??

Have a meeting coming up to discuss exactly what's happening to us as a company and I want to be able to quote correct law regarding this matter.

Any help or advice appreciated.

[borisbeaver]

I think you should be worried.  P45's are normally only issued after termination of employment.

[Ethel Street]

The two forms have entirely different purposes. The official explanantions from HMRC webpage explain it better than I coulld

 

P45 ===> https://www.gov.uk/paye-forms-p45-p60-p11d

 

P60 ===> https://www.gov.uk/paye-forms-p45-p60-p11d/p60

 

So you only get a P45 from your employer when you stop working for them. Which doesn't sound right in your situation. You need to get proper explanations from them, not only about why a P45 but, more importantly, are they making changes to your contract of employment because of the new investors? That could have all sorts of implications for you, continuity of service for example.

Edited March 29, 2021 by Ethel Street

[iloveapex]

We have had some clarification and they are saying because we are going to a different PAYE reference, that is the reason why they can't give us a P60. All of our terms and service stay exactly the same. Still sounds strange.

I'll check out the links, thank you

[honeybee13]

Do you have everything in writing?

 

HB

[borisbeaver]

So they issue you a P45 which you then have to hand back to them in order for them to do your P60 next month - I get it!!

[Ethel Street]

This page on HMRC PAYE guidance to employers seems to cover what you've explained and says it isn't necessary for the employer to issue a P45.

 

https://www.gov.uk/guidance/payroll-what-to-do-if-your-business-merges-or-changes-ownership

 

 

 

 

I'm not an expert on this I'm afraid. It might be worth calling HMRC helpline for advice. 

 

 https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees

[iloveapex]

45 minutes ago, honeybee13 said:

Do you have everything in writing?

 

HB

Email so far. Meeting tomorrow. Typical of our company to tell us what has happened after its all been sorted

[iloveapex]

6 minutes ago, Ethel Street said:

This page on HMRC PAYE guidance to employers seems to cover what you've explained and says it isn't necessary for the employer to issue a P45.

 

https://www.gov.uk/guidance/payroll-what-to-do-if-your-business-merges-or-changes-ownership

 

 

 

 

I'm not an expert on this I'm afraid. It might be worth calling HMRC helpline for advice. 

 

 https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees

Thank for the link, been trying to chat to someone online but each time I eventually get to put in my name, I'm told they are all busy again, lol

[honeybee13]

I'm sure you know to keep things like emails just in case.   Good luck with the meeting.

 

HB

[rapster01uk]

http://refreshinglawltd.co.uk/2015/01/post-tupe-transfer-p45-issues/

 

Under Tupe law, there should be no need for a P45, as the job stays the same, just working for a new company instead.

[iloveapex]

So still no further forward. Meeting today basically said contracts being signed tomorrow and full details will be released. Still not sure if this is investment or new ownership, guessing the latter. Will try calling HMRC again today. Was on hold for my lunch break yesterday.