Accountancy Resources
On 15 March 2012, we advised that the Software Developers’ Support Team (SDST) made an informal announcement that the P38(S) procedure and form will be withdrawn from tax year 2013/14.
Last week, HMRC made changes to their ‘Student Employees’ page announcing this as an important update and change. Different employers will be affected at different times by the withdrawal of the P38(S): Real-Time Information (RTI) Employers 2012/13 For an employer who knows that they are going live onto RTI in the current tax year, i.e. they are in the pilot scheme or expect to be in the pilot scheme, the P38(S) is redundant at the point that they become an RTI-Employer.
At the point that this employer starts to submit in real-time, all previous P38(S) employees must show a tax code of NT and a leaving date on their record. Real-Time Information (RTI) Employers 2013/14 For an employer joining RTI at some point in the next tax year, i.e. the majority of employers, simply, the P38(S) route will not be available. Comment The withdrawal of the long-established P38(S) procedure will impact many employers and this confirmation on HMRC’s Website will give organisations time to amend their policies, procedures and practices. The P38(S) is redundant from 06 April 2013.
Due to the way that Easter falls in 2013, this may mean that a student employee is on the P38(S) procedure during their Easter vacation up to 05 April 2013 and will have to follow the normal P46 procedure from 06 April 2013.
Importantly, however, bear in mind that the P46 itself is being made redundant at the point an employer becomes an RTI-Employer! The P46 is being replaced by the Starter Questions.
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