The P45 It form is an essential document used in the UK when an employee leaves their job. This form details necessary information about the departing employee's pay, tax details, and any student loan deductions. Completing the P45 accurately is crucial for both the former employee's tax records and for their new employer's payroll processing.
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The P45 form plays a crucial role in the employment journey of individuals in the UK, particularly when they leave a job. It consists of three distinct parts and serves multiple functions. Primarily, it documents the details of an employee's departure from their employment, including vital information such as their total pay to date and total tax deducted. Part 1 of the P45 is submitted to HM Revenue and Customs (HMRC), ensuring that tax records remain accurate and up-to-date. Meanwhile, Parts 1A and 2 are for the employee and their new employer, respectively, facilitating a smooth transition to the next job. For employees, keeping Part 1A safe is essential; its information may be needed for tax returns or to apply for certain benefits. The form also addresses scenarios such as student loan deductions, details related to National Insurance, and specific instructions for employers. With several boxes to fill out, including those for the employee's personal details and tax codes, accuracy on the P45 is important to avoid potential tax issues. Ultimately, the P45 is not just a piece of paperwork; it’s a vital document that helps ensure employees can move seamlessly between jobs without complications regarding their tax obligations.
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
Filling out the P45 It form is an important process for documenting an employee's departure from a job. Ensure that all information is accurate and complete to avoid potential complications with tax reporting. The following steps outline the procedure for completing this form.
Once the form is complete, send Part 1 to HM Revenue & Customs. Hand Parts 1A, 2, and 3 to the employee when they leave. Ensure you keep a record of all submitted details for your records.
The P45 form serves several important functions in the UK employment system. When an employee leaves a job, the employer completes this form to provide details of the employee's pay and tax deductions up to the leaving date. It is crucial for both the employee and the new employer as it helps in determining the correct tax code and ensures that the employee is not overtaxed at their next job. Essentially, it acts as a record of an employee's earnings and taxes, making it easier to transition between jobs without tax issues.
To accurately complete the P45 form, several pieces of information are required. The employer must provide the employee's name, National Insurance number, and PAYE reference. Additionally, details about the employee's total pay and tax amount to date, as well as the leaving date and tax code, must be included. If there are any Student Loan deductions or if the employee was on a week 1 or month 1 tax code, this should also be indicated. Complete and clear details are essential for ensuring the form's validity.
After receiving your P45 form, it is important to keep it in a safe place. This document is necessary for your records and may be required for future tax returns or claims. If you are starting a new job, provide Parts 1A, 2, and 3 to your new employer. If you are claiming benefits, such as Jobseeker's Allowance, you will also need to present this form at your Jobcentre Plus office. Remember, copies of the P45 are not available, so take care to maintain the original.
If your employer fails to provide you with a P45 upon your departure, it is advisable to request one. Employers are legally obligated to issue this form when an employee leaves. Without a P45, your new employer may withhold taxes using an emergency code, which could lead to over-taxation. If the situation persists and you do not receive the form, you can contact HM Revenue & Customs (HMRC) for assistance and guidance on how to proceed.
Filling out the P45 form correctly is important for both employers and employees. One common mistake involves not using capital letters throughout the form as required. This may seem minor, but it can lead to processing delays or errors in information entry by HM Revenue & Customs (HMRC).
Another mistake is neglecting to include the correct PAYE reference number. This number helps HMRC track an employee's tax records. Without it, the processing of the P45 may be hindered, resulting in potential tax issues down the line.
Some individuals also mistakenly leave out critical details regarding Student Loan deductions. Failing to indicate whether such deductions apply can impact the employee's financial situation. Properly checking the relevant boxes can ensure that deductions are handled accurately during the transition to a new job.
Lastly, individuals often forget to certify the information provided. The section requiring the signature confirming accuracy is essential. Omitting this step may invalidate the form or result in complications with tax records, making it vital to complete every required section fully.
The P45 form is essential when an employee leaves a job, as it documents their pay and tax details. Several other forms and documents often accompany the P45 to ensure a smooth transition for both the employee and employer. Here is a list of related documents:
Each of these documents serves a specific purpose, making the transition from one employment situation to another more straightforward. Understanding their importance can help navigate the complexities of job changes and ensure that all necessary details are properly handled.
P60: Similar to the P45, the P60 summarizes an employee's annual tax and National Insurance contributions. It is provided at the end of the tax year and helps employees understand their earnings and tax contributions for that year.
P11D: This document details expenses and benefits provided to the employee. Like the P45, it helps HMRC calculate the tax owed by the employee based on non-cash benefits.
P50: The P50 is used to claim a tax refund if an employee has stopped working and has overpaid tax. It serves a similar function as the P45 by informing HMRC of the employee's change in work status.
P85: When leaving the UK to work abroad, the P85 allows individuals to inform HMRC and request a tax refund. It is comparable to the P45 as both documents communicate important employment changes.
Jobseeker's Allowance (JSA) application form: If an individual is unemployed but eligible for support, this form is required. It shares similarities with the P45 in that both are used to establish an individual's employment history and tax status for benefits.
Completing the P45 IT form accurately is critical for both employees and employers. Here is a guide outlining important actions to take and avoid:
Proper adherence to these guidelines can streamline the process for all parties involved and ensure compliance with tax regulations.
This is not true. The P45 can be issued to any employee leaving a job, regardless of their work hours or contract type. Whether part-time, full-time, or temporary, if you leave a position, you should receive a P45.
In reality, it is important to safeguard your P45. This form contains essential information about your earnings and tax deductions, which you may need for tax returns or when starting a new job.
While employers fill out and provide the P45, employees also have responsibilities. For instance, ensuring the accurate information is included and retaining your portion is crucial. A P45 is a co-managed document!
Not true! If you've misplaced your P45, you can request a copy from your previous employer. They are required to keep records and can issue a replacement if needed.
This is a common misunderstanding. You actually need to provide your P45 to your new employer, not HMRC, when you start your new job. Ensuring they have this document can help prevent any tax issues.
While the P45 is indeed important for taxes, it is also used for other benefits. If you're claiming Jobseeker's Allowance or Employment Support Allowance, for example, you'll need it when applying.
Irs Get Transcript - It serves as an important document for verifying a taxpayer’s financial status.
Is Medicare Based on Income - This form is essential for anyone whose financial situation has changed and may affect their benefits.