As per HMRC guidelines, workers with leave dates in previous tax year and no pay in current tax years should not be outputted on the FPS (Full Payment Submission) in the current tax year. Source: - https://www.gov.uk/employee-leaving
Instead, a “FPS Adjustment” needs to be sent for previous tax year to send the worker’s leave date to HMRC.
In the PurePro application, when adding a leave date for the worker, the system checks the tax year the leave date belongs to and whether the worker has been paid in the current tax year.
Case 1: - Worker leave date in Previous Tax Year and worker not paid in current tax year
In the event where a worker has not been paid in the current tax year and a leave date has been added for previous tax year, the worker would be excluded from the current FPS submission.
Instead, the user would have to send a “FPS Adjustment” for the tax year the worker has left in to send the worker’s leave date to HMRC. For further information, please refer to FPS Adjustment guide.
A task is created in the system to inform the user of any such worker and/or event.
Case 2: - Worker leave date in Previous Tax year and worker paid in current tax year
In the event where a worker has been paid in the current tax year and users want to add a leave date in previous tax year, the user won’t be allowed to add a backdated leave date.
A validation error message is displayed to inform the user has worker has been paid in recent periods and a leave date in previous period cannot be added.
In this case, a leave date after the worker’s last pay date can be added and this would be sent on the current FPS submission.
Limitations
There are currently some limitations when using this logic to process worker leave dates in previous tax years.
Currently, this logic doesn’t work accurately with worker transfers, where a worker has been paid in previous tax year in 1st account and then transferred to 2nd account in the new tax year. Add a backdated leave date for previous year to this worker, currently won’t invoke this logic. Any such workers won’t be available for “FPS Adjustment” as of recent build.
Another limitation of this logic is the inability to validate a worker’s leave date and payment in current period. This limitation is specific to the order of process where a backdated leave date for previous tax year id added first followed by a payment in current tax year. In this case, a warning will be triggered “Warning: Worker left in previous tax year. Please process an FPS adjustment for the previous tax year for this worker to report leave date to HMRC”.
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