1. Introduction
What is a P45, and Why is it Important?
A p45 is a vital document in the UK’s tax and employment system. It details the income you earned and the tax you paid up until the end of your job in a particular tax year. Employers issue it to employees when their employment ends, whether you leave voluntarily, are let go, or retire. Because it displays essential details such as your tax code, national insurance contributions, and your total pay for that tax year, it helps ensure you’re on the right tax code at your new job.
When you hand your p45 form to your new employer, they can use it to determine your correct tax code. Without it, there’s a risk you might fall onto an emergency tax code or face incorrect tax deductions. Since it’s part of official HMRC records, keeping it safe is a good idea. If you have multiple jobs, each job should issue its own p45 if your employment with them ends. In rare circumstances, you may need a replacement p45, though this typically involves obtaining a copy from your old employer or verifying your wages through other means.
At MONEYSAFE, we recognize how important it is to fully understand your tax affairs. This guide outlines how to obtain your p45 form, how long it should take, and what to do if you experience any hurdles, such as an employer refusing to provide it. Whether you’re starting your first job, transitioning to a next employer, or simply tidying up your tax documentation, having your p45 ensures you meet your tax obligations in the current tax year and future tax years.
2. How Do You Get a P45—and When?
How a P45 is Issued
Legally, once your employment ends, your old employer must give you a p45. For many employers, this happens automatically through their payroll system or payroll software. The hmrc form p45 typically contains several parts (often labeled Part 1, Part 1A, Part 2, Part 3). Part 1 is sent electronically to HMRC by your employer, while the other parts (Part 1A, Part 2, and Part 3) are handed or posted to you in paper form.
For convenience, some employers now provide the p45 online. Nevertheless, you should receive either a physical or digital version. In both scenarios, check it for accuracy so that your national insurance number, tax code, and date of leaving are correct. If any details are missing or incorrect, it can affect your tax standing in your next employer’s payroll.
Remember, you cannot request a p45 in the middle of your employment; the p45 is only valid once the employment contract ends. If you’re moving from your old employer to a brand-new employer, the p45 is the key to transferring your tax code and national insurance contributions seamlessly.
How Long Does It Take to Get a P45?
In most cases, you should receive your p45 soon after your employment ends—often within one to two weeks. Certain employers provide it on your final day or in your final paycheck. However, the exact timeline may vary based on internal payroll processes. If weeks pass without receiving it, reach out promptly to your former employer (often the payroll or HR department) to request an update.
It’s important not to let too much time elapse. If you start your new job without a p45 form, your new employer may use a starter checklist (previously known as a P46) to determine your tax code. This can put you on an emergency tax basis, potentially leading to paying too much tax until the right tax code is confirmed.
3. What is a P45 Used For?
Your p45 is proof of your tax status and income up to the point of leaving your job. It ensures that when you move on, you don’t pay too much (or too little) tax at the start of your new employment.
Starting a New Job Without a P45
Sometimes, you might begin a new job before you receive your p45 from your previous employer. In such instances, your new employer might ask you to fill out a starter checklist (often colloquially referred to as the old P46). This form collects crucial details like your national insurance number and whether you have any other jobs. While completing a starter checklist helps them allocate a tax code for you, it may not always align with your actual tax situation. That discrepancy can result in an emergency tax code. If you realize you’re on the wrong tax code, notify your employer right away or speak with HMRC to fix any errors.
Do You Get a P45 If You’ve Been Sacked or Retire?
Yes. No matter why your employment ends—resignation, redundancy, dismissal, or retirement—your former employer must provide a p45. Even when you retire and begin claiming your pension, your old employer still needs to finalize your employment records by issuing your p45. If you plan to take on part-time work in retirement, having a p45 helps ensure you’re on the correct tax code in your new arrangement. Similarly, if you were sacked, you’re still entitled to that document, as it’s crucial for accurate tax and national insurance tracking.
4. Handling Employer or Form Issues
What to Do If Your Employer Won’t Issue Your P45
Occasionally, an employer may withhold a p45, typically due to oversight, administrative delay, or, in rare cases, a dispute. If you’ve officially left your employment, the law requires your old employer to issue your p45. Here’s how you can address this situation:
- Contact HR or Payroll: Send a polite but firm request emphasizing the necessity of the p45.
- Remind Them of Legal Obligations: Let them know the urgency—without it, your new employer might place you on an emergency tax code, causing immediate financial impact.
- Seek External Support: If efforts fail, consider contacting HMRC. In the worst-case scenario, you may need professional help from a pro tax accountant for guidance on your tax returns if your p45 isn’t forthcoming.
What If Your P45 Contains Incorrect Information?
Errors sometimes creep in—like the wrong national insurance number, tax code, or an incorrect leaving date. To fix these issues:
- Notify Your Former Employer: They may need to correct their internal payroll system and reissue an amended p45.
- Keep All Documentation: If you’ve already given the inaccurate p45 to your new employer, inform them as well. They’ll need the corrected information to ensure tax accuracy.
- Check for Other Forms: Sometimes, you may also need amended p11d forms for any benefits you received, or an updated p60 form if the tax year ended.
What Happens If You Lose Your P45?
Although it’s best to store your p45 safely, mistakes happen. If you lose your p45 or need a replacement p45, you cannot just call HMRC for a direct copy—they do not provide duplicates of a p45. Instead, approach your old employer for a statement of your earnings and tax deductions. Sometimes, if you are mid-tax year, you can use your final payslip with relevant tax and pay information in place of a p45.
Ensure you keep your payslips and other records in good order. If all else fails, providing your final payslip and end-of-year statements may be enough evidence for your new employer or hmrc to allocate the right tax code. Remember, you should also retain your p60 (if you worked through the end of a tax year). That form similarly records your total pay and tax for the year, though it is not a direct replacement for a p45.
5. How Long Is a P45 Valid For?
Relevance of a P45 Over Time
A p45 only officially pertains to the current tax year in which you cease your employment. For example, if you leave a job in July, that’s still part of the same tax year that ends on 5 April the following year. If you don’t secure a new job until after the tax year has passed, you may have to rely more on your p60 or other documentation to confirm your correct tax situation.
Nevertheless, it’s still a good idea to keep your p45 in your personal records indefinitely. You may need the exact details at a later date, especially if you’re completing your own tax returns, verifying tax payments, or checking for unclaimed tax refunds.
6. Differences from Other Forms
What’s the Difference Between a P45 and a P60 Form?
Both a p45 and a p60 form are official HMRC forms but serve different functions:
- P60 Form: This is an annual summary of your earnings and tax for a complete tax year—from 6 April to 5 April—while you’re still employed. If you stay with an employer through the end of a tax year, you’ll receive a p60.
- P45 Form: This is specifically issued when your employment ends before or after the tax year. It shows your tax and pay details up to the point you left.
Hence, the p60 form is about your entire tax year with one employer, whereas a p45 focuses on the part of the year until you leave.
What’s the Difference Between a P45 Form and a ‘Starter Checklist’ (P46)?
A starter checklist—previously known as a P46—is a form used by employers when a new employee doesn’t possess a p45. It gathers vital details (e.g., national insurance number, prior jobs, etc.) to determine your tax status. While the p45 reflects actual tax withheld and your official date of leaving your old employer, a starter checklist is more of a self-declaration that helps your new HR or payroll department assign a provisional tax code. The final goal is that once they receive your official p45 or have updated info from HMRC, your tax code is correctly adjusted.
7. Conclusion
Where to Find Additional Help with P45s
If you have persistent issues with your p45, your old employer, or your tax calculations, you have a few options:
- Contact HMRC Directly: You can call or use their online services to verify that your tax and national insurance contributions are accounted for.
- Consult a Pro Tax Accountant: Especially if you have complicated tax affairs, multiple jobs, or need to handle a tax return for the previous tax year or the current tax year, a professional can help navigate complexities.
- Visit GOV.UK: The UK government’s official website offers guides on tax codes, tax refunds, emergency tax issues, and more.
- Pension Provider: If you’re retiring, your pension provider can also clarify how your final wage and pension payments interact, ensuring your p45 is accounted for appropriately.
Summary and Next Steps
Your p45 is one of the most crucial forms you’ll receive at the close of any job in the UK. It documents the tax you have paid, the tax code allocated to you, your employment start and end date, and your total pay to date. Passing this document on to your new employer ensures you do not get placed on an emergency tax code and that your tax deductions line up with your real income. If you have issues receiving it or find mistakes, act quickly:
- Stay in Contact with your former employer if your p45 is delayed or incorrect.
- Keep Calm: If you don’t have a p45 in time, a starter checklist can be a fallback solution.
- Retain a Copy: You may need your p45 for reference or in case the payroll system at your new job requires clarifications.
- Seek Advice: A pro tax accountant can step in if you have unusual circumstances like multiple incomes, self-employment, or benefits in kind that require p11d forms or special tax treatment.
Ultimately, having the correct p45 form sets you on the proper path to paying exactly what you owe—no more, no less—and avoids the headache of retroactive tax fixes or amendments to your tax returns. Whether you’re switching between jobs, finishing a first job, or even retiring, ensure you fully understand how to get and use your p45 effectively. Staying organized with official forms, from your p60 to your p45 and other payslips, is a key part of maintaining robust financial conduct authority standards in your personal finances.
