New form P45ESA

Consequential changes to PAYE and NICs were required with the introduction of the Employment and Support Allowance on 27 October. SI 2008/2601 amends the 2003 PAYE Regulations (SI 2003/2682) and provides that the Department for Work and Pensions should operate a modified form of PAYE on payments of the new allowance, requesting forms P45, or using form P46, and completing deductions working sheets. A new form, P45ESA, is to be used by the DWP when a claimant ceases to claim the allowance, and so employers can expect to see these from new employees.