The P45 It form is a crucial document that employers must complete when an employee leaves their job. This form provides essential information about the employee's earnings and tax deductions, ensuring a smooth transition to new employment or benefits. Understanding its components and proper usage can help both employers and employees navigate the complexities of tax obligations and entitlements.
What is the P45 form?
The P45 form is an official document issued by an employer when an employee leaves their job. It provides important details about the employee's tax and pay status, including total earnings and tax deducted during the employment period.
What sections are included in the P45?
The P45 consists of three parts: Part 1 is for HM Revenue & Customs (HMRC), Part 1A is for the employee, and Part 2 is for the new employer. Each part contains essential information such as the employee's National Insurance number, tax code, and total pay and tax to date.
How does an employee receive their P45?
When an employee leaves a job, the employer is responsible for completing the P45 and providing Parts 1A, 2, and 3 to the employee. Part 1 should be sent to HMRC immediately. Employees should keep Part 1A safe for their records.
What should an employee do with their P45?
Employees should retain Part 1A of the P45 for their records, as it may be needed for tax returns or future employment. Parts 2 and 3 should be given to the new employer to ensure accurate tax deductions. If an employee is not working or claiming benefits, they may need to submit the P45 to HMRC for tax refunds.
What happens if an employee does not receive their P45?
If an employee does not receive their P45 upon leaving a job, they should contact their former employer to request it. If the employer is unresponsive, the employee can contact HMRC for guidance on how to proceed.
What if the employee has a Student Loan?
Employees with a Student Loan will have deductions noted on their P45. If the employee is required to continue making Student Loan repayments, this will be indicated on the form. Employees should ensure their new employer is aware of this to avoid issues with deductions.
What should a new employer do with the P45?
New employers must carefully review the P45 provided by the new employee. They should complete the necessary sections and ensure that the information is accurate. Part 3 of the P45 must be sent to HMRC promptly to ensure proper tax handling.
How does the P45 affect tax codes?
The P45 includes the employee's tax code at the time of leaving their previous job. This tax code is essential for the new employer to apply the correct tax deductions. If the employee is on a Week 1 or Month 1 basis, it is crucial to indicate this on the form to avoid incorrect tax calculations.
Misconceptions about the P45 form can lead to confusion for both employees and employers. Here are seven common misconceptions:
Neglecting to Use Capital Letters: When filling out the P45 form, it's essential to use capital letters. This ensures that all information is clear and legible. Many people forget this simple requirement, leading to confusion and potential errors.
Incorrect National Insurance Number: Providing an incorrect National Insurance number can cause significant delays in processing. Double-checking this number is crucial, as it uniquely identifies you within the system.
Missing the Leaving Date: Forgetting to include the leaving date is a common mistake. This date is vital for tax purposes and should be filled out accurately to avoid complications.
Not Indicating Week 1 or Month 1: If you are on a Week 1 or Month 1 tax code, it is important to mark 'X' in the appropriate box. Failing to do so can lead to incorrect tax deductions.
Leaving Out Total Pay and Tax Amounts: Many individuals overlook the section for total pay and tax amounts. This information is essential for both the employee and the new employer to ensure accurate tax records.
Forgetting to Sign the Form: Finally, remember to certify that the details entered are correct by signing the form. This step is often rushed, but it is necessary to validate the information provided.
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
Do I Need International Drivers License - This form is essential for U.S. residents planning to travel abroad and drive.
Before proceeding with your claim, it's important to familiarize yourself with the necessary forms and requirements. For detailed guidance on the mediation process and to access resources, you can refer to Georgia Documents, which provides all the information you need to effectively complete the Georgia WC 100 form.
Spanish Job Application - By signing, you certify that the information provided is accurate to the best of your knowledge.