What is a P45 form?
The P45 form is an official document that an employer provides to an employee when they leave a job. It outlines the employee's earnings and the tax that has been deducted during their employment. The form is divided into three parts, with each part serving a different purpose for the employee, the new employer, and HM Revenue & Customs (HMRC).
What information is included on a P45?
A P45 includes several key pieces of information: the employee's National Insurance number, tax code, total pay to date, total tax deducted, leaving date, and the employer's PAYE reference. It also indicates whether any student loan deductions are applicable. This information is crucial for the employee's tax records and for the new employer to ensure correct tax deductions.
How do I receive my P45 after leaving a job?
Your employer is responsible for issuing your P45 when you leave. It is typically provided on your last working day or shortly thereafter. If you do not receive it, you should contact your former employer to request it. It is important to keep your P45 safe, as you will need it for tax purposes or when starting a new job.
What should I do with my P45 when starting a new job?
When you begin a new job, you should give Parts 2 and 3 of your P45 to your new employer. This allows them to set up your tax code correctly and avoid emergency tax deductions. Keep Part 1A for your records, as it may be needed for future tax returns or other financial matters.
What happens if I lose my P45?
If you lose your P45, you can request a replacement from your former employer. If they are unable to provide one, you may need to complete a new starter checklist with your new employer, who will then assign you an emergency tax code until your tax situation is clarified. This may result in higher tax deductions temporarily.
Can I claim a tax refund using my P45?
Yes, if you believe you have overpaid tax during your employment, you can use your P45 to claim a tax refund. You can do this by contacting HMRC directly or by completing a P50 form. It is advisable to keep your P45 until you receive confirmation that your tax affairs are settled.
What should I do if I am going abroad after leaving my job?
If you are leaving the UK to work abroad, you should inform HMRC and may need to complete a P85 form. Additionally, you can send your P45 to HMRC with a letter explaining your situation. This will help ensure that your tax records are updated and that you receive any potential refunds.
What if I die while employed?
If an employee passes away, the employer must indicate this on the P45 by entering 'D' in the appropriate box and send all parts of the form to HMRC immediately. This ensures that the employee's tax records are accurately updated and handled according to the law.