You should put the employee’s leaving date on their payroll record and make deductions as normal when you send your next Full Payment Submission (FPS), unless you’re paying them a company pension.
You must also give the employee a P45. If your payroll software doesn’t automatically produce P45s you can order copies from HMRC.
If the employee left in the current tax year and you didn’t report it in the right FPS, you must include them in the next FPS. You must also:
If you’re paying a pension to the retiring employee:
You must continue paying statutory maternity, paternity or adoption pay until the end of an employee’s statutory leave, even if they stop working for you.
You should agree one of the following with the employee:
If you have to pay an employee after they leave (including someone you’re giving a taxable redundancy payment over £30,000):
The payment should be the only one in the ‘Year to date’ field if it’s being paid in the next tax year.
You must not give the employee another P45.