What is a P45?
A P45 is essential for ensuring that you pay the correct amount of tax when changing jobs. If you do not have a P45, providing your new employer with accurate information about your employment and financial situation will help them calculate your correct tax code. Always keep Part 1A of your P45 for your records and ensure your new employer receives Parts 2 and 3.
A P45 is an important document in the UK tax system that provides a summary of your pay and tax details for the tax year up to the date you leave a job. It is issued by your employer when you stop working for them. The P45 form is divided into four parts:
Part 1: Sent to HM Revenue and Customs (HMRC) by your employer.
Part 1A: For your own records.
Part 2: Given to your new employer.
Part 3: Given to your new employer to send to HMRC.
How to Get a P45
When you leave a job, your employer is required to provide you with a P45. This should be given to you on or immediately after your last working day. It’s a legal requirement for your employer to issue this document, and it’s crucial for ensuring that your tax affairs are up to date and correct.
How Long Does an Employer Have to Issue a P45?
An employer should issue a P45 on your last working day, or as soon as possible after you leave the company. There is no specific time frame defined by law, but it is generally expected to be issued promptly. If you haven’t received your P45 within a reasonable time after leaving your job, you should contact your former employer to request it.
How to Stop Getting Emergency Taxed Without a P45
If you start a new job and do not have a P45, your new employer will not have your previous tax details, and you may be placed on an emergency tax code. This could result in you paying more tax than necessary. To avoid this:
Complete a Starter Checklist: Your new employer will provide you with a ‘starter checklist’ (previously known as a P46) to gather your tax information. Completing this accurately will help ensure you are on the correct tax code.
Provide Previous Pay and Tax Details: If possible, provide your new employer with your previous pay and tax details from your last payslip.
What to Do if an Employer Won’t Give a P45
If your former employer refuses to provide a P45, you should take the following steps:
Contact HMRC: Inform HMRC about the situation. They can help you sort out your tax affairs and ensure you are on the correct tax code for your new job.
Use a Starter Checklist: Complete the starter checklist provided by your new employer, which will help them apply the correct tax code.
Do I Need a P45 to Start a New Job?
You do not strictly need a P45 to start a new job, but having one helps ensure that you are taxed correctly from the start. Without a P45, your new employer will need to rely on the starter checklist to apply the correct tax code, which might not be as accurate as having the details from your P45.
Do You Get a P45 on a Zero-Hour Contract?
You are entitled to receive a P45 when you leave a job, regardless of the type of contract you are on, including zero-hour contracts. Employers are required to provide a P45 to any employee who stops working for them.
Conclusion
A P45 is a crucial document for managing your tax affairs when you leave a job. It ensures that you are taxed correctly in your new employment and that your tax records are up to date. If you do not receive a P45 or your employer refuses to issue one, it is essential to contact HMRC and provide your new employer with as much information as possible to avoid being emergency taxed. Always complete the starter checklist accurately when starting a new job without a P45 to help ensure your tax code is correct.
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