Insolvency
The question
To ask the Chancellor of the Exchequer, what guidance HMRC issues to employees who work in companies entering administration who (a) have not received P45s and (b) are being taxed under emergency codes; and whether her Department plans to take steps to provide more support to employees who have been disadvantaged in insolvency cases.
Answered by Dan Tomlinson
HMRC does not issue specific guidance to employees of companies entering administration regarding P45s or emergency tax codes.
Where a company is in administration, the administrator, who is a regulated Insolvency Practitioner, is responsible for issuing relevant documents, such as P45s, to former employees.
A customer may be assigned an emergency tax code if HMRC has not received updated income details following a change in circumstances. Once HMRC receives the correct information, the tax code will be adjusted accordingly. Guidance is available to all customers on emergency codes and how to update a code on Gov.UK.
HMRC undertakes reviews of processes regularly and is open to receiving any specific suggestions for improvements in administrating tax within its responsibilities.
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