When starting a new role, there are a whole host of documents that you need to provide to your new employer or retain for your records. One of those key documents will be a P45 (if available).
What is a P45?
A P45 certificate is an official document provided by your previous employer when you leave their employment.
The form is important for several reasons:
- Details the employee’s current tax code
- Records the employee’s total pay for the year and tax deducted to date
- If you have overpaid taxes during your employment, the P45 is necessary to claim a tax refund as part of the first pay run with your new employer
- Confirms your leaving date
- Provides employees national insurance number
- Confirmation of continuation of student loan deductions
How is a P45 issued?
As part of the employee’s final pay cycle, they will be processed as a leaver when the employer completes the Full Payment Submission to HMRC.
If payroll software is being used, the P45 will be generated automatically and issued to the employee at the time of leaving. If you haven’t received it before you leave the job or with your final payslip, then it’s important to reach out to your former employer.
How long is a P45 valid for?
A P45 is valid for the tax year in which it was provided. So, for example if you receive a P45 in February 2024, it will only be valid until the end of March 2024, before the new tax year starts in April.
Why is a P45 so important?
A P45 ensures the employee’s tax is calculated correctly when starting their new role, or for claiming benefits. Without a P45, the employer will have to calculate your first pay run with an emergency tax code.
Starting a new job without a P45?
If your last employer hasn’t provided you with a copy of your P45, or if this new job is your first role in the tax year, then you won’t have a P45 to handover. In this instance, your new employer should provide the HMRC starter checklist which I have linked to below.
What is the HMRC starter checklist? (previous article dated January 2025)
Starter checklist (publishing.service.gov.uk)
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Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.