Revenue issued a notice for employers and pension providers as a reminder of the procedures to be followed on commencement and cessation of an employment. We reported of delays in P46 applications in tax.point and that Revenue undertook an educational campaign on the correct use of Form P45s and Form P46s with the aim of alleviating the number of unnecessary P46 applications.

In this recent notice Revenue advises that they are examining the use of form P46 by all employers, in order to identify those employers who may be over-using the form, or not using it for its intended purpose. As per the notice a form P45 should be issued to an employee on the date an employment ceases. A form P46 should only be used where absolutely necessary and where all efforts to obtain a P45 (parts 2 & 3) from the new employee have failed.

In the notice, employers and pension providers are also advised that P45s filed on ROS require validation and, depending on when the P45 is filed, the transaction processing can lead to a short delay in the availability of the form in the ROS Revenue record.

Employers and pension providers are also reminded that where an employee has opted to make their Local Property Tax (LPT) payments by deduction at source from their wages/pensions, Revenue issued instructions from mid June onwards to deduct LPT from payroll via the P2C (Employer Tax Credit Certificate).

The full text of the notice is published here.