Under RTI, when an employee leaves, the employer must tell HMRC. HMRC have published a step-by-step guide for employers using Basic PAYE Tools setting out the procedure that should be followed when an employee leaves. The guide is available on the Gov.uk website.

Basic PAYE Tools is HMRC’s free payroll software which can be used by employers with nine or fewer employees. It can be downloaded from the Gov.uk website.