HMRC have amended the guidance on the starter process to reflect customer feedback on starter declarations, to help increase accuracy for individuals with a P45 and more than one job.
In such cases, instead of selecting statement C and operating code BR, the employer should select statement B and operate the tax code on the P45 - unless the tax code on the P45 is BR, 0T or D prefix - in which case statement C would still apply.
Individuals without a P45, or with an old P45, will continue to complete the starter declaration to confirm their employment situation.
The full guidance on the starter process will be updated and available from 6 April 2013 in HMRC's guide 'Notifying and getting new employee information right'.
HMRC acknowledge that the starter process guidance had gone through several iterations and, for 2013-14, we will accept if your payroll software reflects an earlier iteration that does not follow this new process.
Please be aware the following guidance will not be updated to reflect this change until 6 April 2013.