Issuing P45s when transferring trade from sole trader to limited company

Are you legally obliged to issue P45s to staff when transferring a trade from a sole trader to a limited company or can you just issue a letter detailing the change in employer?

I know that you have to actually process the P45s so as to inform Revenue but it seems a bit pointless to give Parts 2-4 to each employee only for them to hand them straight back for the 1st week's payroll of the new company!

I've been in this situation in the past. On one occasion I can't recall getting a P45; on the other I definitely did get a P45.

The employees wouldn't need to hand back their P45s as you would already have the details!

I don't think I'd lose any sleep over it. Some employees might get a bit worried if you start handing out P45s, despite it only being a transfer of employment.

Transfer of a business legislation

TUPE employment legislation will apply which covers a transfer of a business.

Try this post http://www.askaboutmoney.com/showthread.php?t=1084 for some further details or google it. NERA will also be able to help.