P45 report

When an employee leaves your company, you must give them a P45 'Details of employee leaving work' certificate. You give Parts 1A, 2 and 3 to the employee when they leave.
You should do this, after updating their final payment, but before submitting the full payment submission (FPS), you must mark them as a leaver. If you have already submitted the employee's final pay on the FPS but not marked them as a leaver, you should resubmit the FPS after making them a leaver.

Student loans

For employees that are, or have been, liable to the deduction of a student loan from their salary:

• Ensure that the student loan pay item is in their pay plan before you print their P45. If they are liable to the deduction of a student loan the 'Continue Student Loan Deductions' box on the P45 will be printed with a 'Y'. This applies even if they have not yet reached the threshold for collection of student loans. Their P45 must still inform their next employer that they are liable to deduction of a student loan.
• If you have received a stop notice from HMRC, ensure that the student loan pay item has been deleted from their pay plan before you print their P45. The 'Continue Student Loan Deductions' box on the P45 will then be left blank.

Before you mark an employee as a leaver you should check:

• Whether the employee has been paid all outstanding payments and deductions. For example, if the employee is owed any overtime, you must pay them for it.
• Whether the employee has received all the statutory pay they are entitled to. For example, if an employee is receiving Statutory Maternity Pay and decides to leave ten weeks into their 39-week maternity pay period, they may still be eligible for the remainder of their statutory payment entitlement.
• Whether the employee is monthly paid and leaving part-way through a month. If so, you can process the employee separately to your other employees. The only difference to normal processing is that you must set your payment date to the actual date the employee is paid.