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An employer has certain obligations in respect of any employees they engage. These obligations are there to assist both the employer and the employee to comply with their income tax requirements.
An employer must ensure that they:
An employer should complete the T14 and give the bottom copy of it to the employee at the end of the tax year. However, if the employee leaves or retires during the year, the employer should complete the T14 and give a copy of it to the employee at that time. The top copy should be retained by the employer until the end of the tax year for submission with the T37 “Employer’s Annual Return”.
If an employer operates a computerised payroll and cannot produce a T14 during the year, they may instead complete and issue a form T13 “Certificate of Tax and Pay Deducted” which is available from the Division. When the T14 is printed at the year end a copy can then be forwarded to the employee.
If an employee dies, their copy of the T14/T13 should be forwarded to their executors.
In addition, the Employment Act 1991 stipulates that an employer must provide an itemised pay statement to all employees, whether full or part-time, “at or before any payment of wage or salary”.
The pay statement must show the following:
Failure to provide a form T14 or payslip to an employee could result in a £250 penalty for non-compliance.