The P45 form is a vital document that records the details of an employee leaving a job in the United Kingdom. It serves multiple purposes, including informing HM Revenue & Customs (HMRC) of an employee's departure, summarizing their pay and tax details up to their leaving date, and assisting in the seamless transition to a new job or claim benefits. If you have recently left your job or are in the process of changing employment, click the button below to ensure you fill out the P45 form correctly.
Transitioning from one job to another can often involve a multitude of paperwork, with the P45 form being a pivotal document for individuals in the UK undergoing this change. This form, which is divided into several parts, serves as a record of an employee's departure from a company, detailing their pay and taxes up to their leaving date. Specifically, the P45 form is structured into parts that cater to different stakeholders in the transition process: Part 1 is intended for HM Revenue & Customs (HMRC), and it highlights crucial information such as the employee's National Insurance number, total pay, and taxes to date, among other details. Employees are given Parts 1A, 2, and 3, which contain similar information but are designed for distinct purposes: Part 1A is for the employee's record, Part 2 is for a new employer or job-seeking benefits, and Part 3 aids the new employer in continuing the employee's tax and National Insurance contributions seamlessly. Instructions on the form also guide employers on how to complete and distribute its parts correctly, ensuring compliance with HMRC guidelines and facilitating a smoother transition for the employee into new employment or towards claiming benefits. With its comprehensive coverage of employment, tax, and personal information, the P45 form is an essential element in the payroll and employee management system within the UK.
P45 Part 1
Details of employee leaving work
Copy for HM Revenue & Customs
File your employee's P45 online at www.hmrc.gov.uk
Use capital letters when completing this form
Employer PAYE reference
Student Loan deductions
1
5
Office number
Reference number
Enter 'Y' if Student Loan deduction is due to be made
/
Tax Code at leaving date
6
2
Employee's National Insurance number
If week 1 or month 1 applies, enter 'X' in the box below.
Title – enter MR, MRS, MISS, MS
or other title
3
Week 1/Month 1
Last entries on P11 Deductions Working Sheet.
7
Surname or family name
Complete only if Tax Code is cumulative. Make no entry
if week 1 or month 1 applies, go straight to box 8.
Week number
Month number
First or given name(s)
Total pay to date
£
•
4
Leaving date DD MM YYYY
Total tax to date
Employee’s private address
8
This employment pay and tax. Leave blank if the Tax Code
12
is cumulative and the amounts are the same as box 7.
Total pay in this employment
Total tax in this employment
Postcode
Works number/Payroll number and Department or branch
9
(if any)
13
I certify that the details entered in items 1 to 11 on
this form are correct.
Employer name and address
Gender. Enter ‘X’ in the appropriate box
10
Male
Female
Date of birth DD MM YYYY
11
Date DD MM YYYY
When an employee dies. If the employee has died
14
enter 'D' in the box and send all four parts of this
form to your HMRC office immediately.
Instructions for the employer
•Complete this form following the 'What to do when an employee leaves' instructions in the Employer Helpbook E13 Day-to-day payroll. Make sure the details are clear on all four parts of this form and that your name and address is shown on Parts 1 and 1A.
•Send Part 1 to your HM Revenue & Customs office immediately.
•Hand Parts 1A, 2 and 3 to your employee when they leave.
P45(Manual) Part 1
HMRC 04/08
P45 Part 1A
Copy for employee
Student Loan deductions to continue
Complete only if Tax Code is cumulative. If there is an ‘X’
at box 6 there will be no entries here.
This employment pay and tax. If no entry here, the amounts
are those shown at box 7.
To the employee
The P45 is in three parts. Please keep this part (Part 1A) safe. Copies are not available. You might need the information in Part 1A to fill in a Tax Return if you are sent one.
Please read the notes in Part 2 that accompany Part 1A. The notes give some important information about what you should do next and what you should do with Parts 2 and 3 of this form.
Tax credits
Tax credits are flexible. They adapt to changes in your life, such as leaving a job. If you need to let us know about a change in your income, phone 0845 300 3900.
To the new employer
If your new employee gives you this Part 1A, please return it to them. Deal with Parts 2 and 3 as normal.
P45(Manual) Part 1A
P45 Part 2 Details of employee leaving work
Copy for new employer
Office number Reference number
Title - enter MR, MRS, MISS, MS or other title
5Student Loan deductions
6Tax Code at leaving date
If week 1 or month 1 applies, enter 'X' in the box below. Week 1/Month 1
7Last entries on P11 Deductions Working Sheet. Complete only if Tax Code is cumulative. If there is an ‘X’ at box 6, there will be no entries here.
£ •
This form is important to you. Take good care of it and keep it safe. Copies are not available. Please keep
Parts 2 and 3 of the form together and do not alter them in any way.
Going to a new job
Claiming Jobseeker's Allowance or
Employment and Support Allowance (ESA)
Take this form to your Jobcentre Plus office. They will pay you any tax refund you may be entitled to when your claim ends, or at 5 April if this is earlier.
Give Parts 2 and 3 of this form to your new employer, or you will have tax deducted using the emergency code and may pay too much tax. If you do not want your new employer to know the details on this form, send it to your HM Revenue & Customs (HMRC) office immediately with a letter saying so and giving the name and address of your new employer. HMRC can make special arrangements, but you may pay too much tax for a while as a result of this.
Going abroad
Not working and not claiming Jobseeker's Allowance or Employment and Support Allowance (ESA)
If you have paid tax and wish to claim a refund ask for form P50 Claiming Tax back when you have stopped working from any HMRC office or Enquiry Centre.
Help
If you need further help you can contact any HMRC office or Enquiry Centre. You can find us in The Phone Book under HM Revenue & Customs or go to www.hmrc.gov.uk
If you are going abroad or returning to a country
outside the UK ask for form P85 Leaving the United Kingdom from any HMRC office or Enquiry Centre.
Becoming self-employed
You must register with HMRC within three months of becoming self-employed or you could incur a penalty. To register as newly self-employed see The Phone Book under HM Revenue & Customs or go to www.hmrc.gov.uk
to get a copy of the booklet SE1 Are you thinking of working for yourself?
Check this form and complete boxes 8 to 18 in Part 3 and prepare a form P11 Deductions Working Sheet. Follow the instructions in the Employer Helpbook E13 Day-to-day payroll, for how to prepare a P11 Deductions Working Sheet. Send Part 3 of this form to your HMRC office immediately. Keep Part 2.
P45(Manual) Part 2
P45 Part 3
New employee details
For completion by new employer
Title – enter MR, MRS, MISS, MS or other title
at box 6, there will be no entries here.
To the new employer Complete boxes 8 to 18 and send P45 Part 3 only to your HMRC office immediately.
New employer PAYE reference
15
Employee's private address
9Date new employment started DD MM YYYY
10Works number/Payroll number and Department or branch (if any)
11Enter 'P' here if employee will not be paid by you between the date employment began and the next 5 April.
12Enter Tax Code in use if different to the Tax Code at box 6
13If the tax figure you are entering on P11 Deductions Working Sheet differs from box 7 (see the E13 Employer Helpbook Day-to-day payroll) please enter the
figure here.
14New employee's job title or job description
16Gender. Enter ‘X’ in the appropriate box
17Date of birth DD MM YYYY
Declaration
18I have prepared a P11 Deductions Working Sheet in accordance with the details above.
P45(Manual) Part 3
After an employee leaves a job, the P45 form serves as a record of their pay and tax deductions. It's crucial for both the employee and their next employer or for claiming a tax refund. The form has multiple parts: Part 1 is for HM Revenue and Customs (HMRC), Part 1A is for the employee to retain, and Parts 2 and 3 are for the new employer or for the jobseeker's benefit claim. Filling out this form accurately ensures that tax records are kept up to date and helps prevent any unnecessary tax being deducted from future earnings.
Once all parts of the P45 are accurately completed, the employer should send Part 1 to HMRC straight away. Parts 1A, 2, and 3 should be distributed accordingly—1A to the employee, and Parts 2 and 3 to either the new employer or the employee for benefit claims or if they're moving on to a new job. It's essential for employees to give their new employer Parts 2 and 3 to ensure their tax code is correctly applied, avoiding any emergency tax codes that might lead to overpayment of tax.
What is a P45 form?
A P45 is a document issued to employees in the United Kingdom by their employer when they stop working for them. It contains important information regarding their salary and the taxes that have been deducted during their employment period.
When do I receive my P45?
You should receive your P45 from your employer when you are leaving a job. It is typically given to you on your last day of employment or shortly after.
What information is included on the P45?
The P45 includes your name, National Insurance number, the tax code used, the date you left your job, total earnings, and how much tax has been paid on those earnings during the tax year.
Why do I need a P45?
Your P45 is crucial for ensuring you are placed on the correct tax code by your new employer or for claiming a tax refund if you are not working. It also helps with processing your state benefits if applicable.
What happens if I lose my P45?
If you lose your P45, you cannot get a replacement. However, your new employer can use a 'Starter Checklist' (previously known as form P46) to gather the required information to place you on the correct tax code.
What should I do with my P45 when I start a new job?
When you start a new job, give parts 2 and 3 of your P45 to your new employer. This helps them determine the correct tax code to use. If you don't, you might be placed on an emergency tax code initially.
Can I get a P45 if I am self-employed?
No, the P45 is only for individuals who are leaving employment under an employer. If you’re self-employed, your tax affairs are handled differently, typically through self-assessment tax returns.
What if I don’t have a new job to go to?
If you're not moving directly into new employment, keep your P45 safe as you might need it for tax purposes, claiming benefits, or applying for a tax refund.
How many parts does the P45 have, and what do I do with them?
The P45 form comes in three parts. Part 1 is sent by your employer to HM Revenue & Customs (HMRC), part 1A is for your records, and you should hand parts 2 and 3 to your new employer.
Do I need a P45 when claiming Jobseeker's Allowance or Employment and Support Allowance (ESA)?
Yes, if you are claiming Jobseeker's Allowance or ESA, present parts 2 and 3 of your P45 at your Jobcentre Plus office. This can help process your claim and any tax refund you might be entitled to.
When filling out the P45 form, individuals often make several errors that can lead to complications with HM Revenue & Customs (HMRC). Avoiding these common mistakes is critical for ensuring a smooth transition for employees leaving work. The following outlines four frequent mistakes:
Failure to use capital letters: The P45 form explicitly requires that all entries should be made using capital letters. This helps in avoiding misinterpretations of the information provided.
Incorrectly handling the Tax Code and Student Loan deductions: A common error is entering incorrect information or misunderstanding when to note 'Y' for ongoing Student Loan deductions or how to correctly process the Tax Code, especially if week 1 or month 1 applies. This can lead to discrepancies in tax calculations.
Omitting or incorrectly entering the National Insurance number: The Employee's National Insurance number is crucial for identity verification and proper recording of taxes and entitlements. Mistakes or omissions in this field can result in processing delays or errors in an individual's tax records.
Neglecting to complete all required sections for different parts of the form: The P45 form is divided into multiple parts, each serving a distinct purpose and audience, including HMRC, the former employee, and the new employer. Failing to distinguish between these parts and provide complete, accurate information in each can lead to administrative complications.
Attention to detail and a thorough understanding of the form's requirements can significantly reduce the risk of making these errors, ensuring a smoother handling of employees leaving work.
When handling the departure of an employee, the P45 form is a key document that marks their exit. However, it often works hand in hand with several other forms and documents to ensure a smooth transition for both the employee and the employer. These documents facilitate various post-employment processes, including tax adjustments, claims for benefits, or the beginning of new employment.
Together, these documents ensure accurate tax treatment and compliance with regulatory requirements after an employee leaves. They serve various purposes, from enabling claims for refunds to ensuring new employers have the necessary details to start the PAYE process correctly. As such, they play crucial roles in the seamless transition of employees between jobs.
W-2 Form (Wage and Tax Statement): The W-2 Form is used in the United States for reporting wages paid and taxes withheld from an employee's salary, similar to the P45 which details an employee's pay and taxes up until their leaving date. Both documents provide critical tax information needed by both the individual and tax authorities.
W-4 Form (Employee's Withholding Certificate): The W-4 Form is filled out by employees to inform employers about their tax situation, similar to how the P45 includes information relevant to tax codes and student loan deductions, guiding tax withholding.
P60 Form: The P60 is a statement issued to employees at the end of the tax year in the UK, detailing their taxable income and deductions for the year, akin to the annual summary that the P45 Part 1 provides when an employee leaves a job midway through a tax year.
P11D Form: The P11D Form details benefits and expenses that have been provided to employees and directors, which is somewhat related to the P45’s function of summarizing an employee’s financial situation, though the P45 focuses on pay and taxes rather than benefits.
1099-MISC Form: In the U.S., the 1099-MISC form is used to report miscellaneous income. Like the P45, it's used for tax reporting purposes, although the P45 is specifically for employment income and tax deductions.
I-9 Form (Employment Eligibility Verification): The I-9 Form is used in the U.S. to verify the identity and legal authorization to work of all paid employees. Like the P45, it is integral to the employment process, focusing on eligibility rather than tax or payroll information.
W-9 Form (Request for Taxpayer Identification Number and Certification): Similar to the P45’s function of identifying an individual’s tax status, the W-9 is used in the U.S. by individuals to provide their taxpayer identification number to entities that will pay them income during the tax year.
CT61 Form: The CT61 Form is used by UK companies to report and pay tax on interest payments or other payments not made through payroll. While different in purpose, it parallels the P45’s role in tax documentation and reporting.
P46 Form: This form is used when a new employee doesn’t have a P45, providing necessary information to the employer about the employee’s tax code. The P46 and P45 both serve to inform tax treatment for an employee, though at different stages of employment.
Starter Checklist: In the UK, this form is used by employers to gather information from new employees without a P45 to get them onto the proper tax code. It mirrors the P45's role in ensuring the right tax code and deductions are applied, but from the alternative starting point of new employment.
When handling the P45 form, it is crucial to maintain accuracy and completeness to ensure a smooth transition for employees leaving work. Below are key dos and don'ts to consider:
When it comes to understanding the P45 form, there are a few misconceptions that can create confusion. Let's clear up some of the most common misunderstandings:
Understanding these points helps both employers and employees handle the P45 form correctly, ensuring a smooth transition for those changing jobs or those who need to claim benefits.
Understanding the P45 form is crucial for both employers and employees in managing transitions in employment. Here are key takeaways to consider when filling out and using the P45 form:
These takeaways underscore the importance of meticulousness and accuracy when dealing with the P45 form. It facilitates a smooth transition for employees moving between jobs, ensures compliance with tax regulations, and maintains the integrity of the tax system.
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