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Fill a Valid P 45 It Form

The P 45 It form is a crucial document used in the United Kingdom for employees leaving a job, detailing their pay and taxes up to their leaving date. It consists of several parts, including details for HM Revenue & Customs, information for the new employer, and a copy for the employee to keep. Those needing to fill out or submit a P 45 It form can do so by clicking the button below, ensuring their employment records and tax details are accurately maintained.

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In the lifecycle of employment, the transition of employees from one workplace to another involves meticulous documentation, especially when it pertains to handling taxes and ensuring compliance with tax laws. The pivotal role of the P45 form becomes evident in these moments, serving as a crucial document that signifies an employee's departure from an organization. This form is split into multiple parts, each with a specific purpose and recipient. Part 1 of the form, primarily for HM Revenue & Customs, captures comprehensive details about the employee, including PAYE reference, student loan deductions, tax code, National Insurance number, and the particulars of their salary and taxes up to the leaving date. Similarly, Parts 1A, 2, and 3 are designed respectively for the departing employee, the new employer, and for the completion by the new employer, encapsulating all necessary tax and personal information to ensure a smooth transition and proper tax handling in the future. Furthermore, the form addresses scenarios like continuing student loan deductions, applying week 1/month 1 tax code, and issuing instructions for different circumstances an employee might find themselves in, such as obtaining tax credits, moving abroad, or transitioning into self-employment. This orchestration of information exchange underscores not only the form's operational importance in the administrative realm but also its significance in safeguarding the rights and financial responsibilities of both employees and employers.

Form Preview Example

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

Office number

Reference number

Enter 'Y' if Student Loan deduction is due to be made

Tax Code at leaving date

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

Week 1/Month 1

Last entries on P11 Deductions Working Sheet.

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

•

Leaving date DD MM YYYY

Total tax to date

•

Employee’s private address

This employment pay and tax. Leave blank if the Tax Code

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

(if any)

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

Male

Female

Date of birth DD MM YYYY

Postcode

Date DD MM YYYY

When an employee dies. If the employee has died

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

Details of employee leaving work

Copy for employee

Employer PAYE reference

Student Loan deductions

Office number

Reference number

Student Loan deductions to continue

Tax Code at leaving date

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

Week 1/Month 1

Last entries on P11 Deductions Working Sheet.

Surname or family name

Complete only if Tax Code is cumulative. If there is an ‘X’

at box 6 there will be no entries here.

Week number

Month number

First or given name(s)

Total pay to date

•

Leaving date DD MM YYYY

Total tax to date

•

Employee’s private address

This employment pay and tax. If no entry here, the amounts

are those shown at box 7.

Total pay in this employment

•

Total tax in this employment

Postcode

•

Works number/Payroll number and Department or branch

(if any)

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

Male

Female

Date of birth DD MM YYYY

Postcode

Date DD MM YYYY

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

HMRC 04/08

P45 Part 2 Details of employee leaving work

Copy for new employer

Employer PAYE reference

Office number Reference number

Employee's National Insurance number

Title - enter MR, MRS, MISS, MS or other title

Surname or family name

First or given name(s)

Leaving date DD MM YYYY

5Student Loan deductions

Student Loan deductions to continue

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.

Week number			Month number
Total pay to date

£ •

Total tax to date

£ •

To the employee

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?

To the new employer

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

HMRC 04/08

P45 Part 3

New employee details

For completion by new employer

File your employee's P45 online at www.hmrc.gov.uk

Use capital letters when completing this form

Employer PAYE reference

Student Loan deductions

Office number Reference number

Student Loan deductions to continue

Tax Code at leaving date

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

Week 1/Month 1

Last entries on P11 Deductions Working Sheet.

Surname or family name

Complete only if Tax Code is cumulative. If there is an ‘X’

at box 6, there will be no entries here.

Week number

Month number

First or given name(s)

Total pay to date

•

Leaving date DD MM YYYY

Total tax to date

•

To the new employer Complete boxes 8 to 18 and send P45 Part 3 only to your HMRC office immediately.

New employer PAYE reference

Office number Reference number

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

If week 1 or month 1 applies, enter 'X' in the box below. Week 1/Month 1

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

Postcode

16Gender. Enter ‘X’ in the appropriate box

Male

Female

17Date of birth DD MM YYYY

Declaration

18I have prepared a P11 Deductions Working Sheet in accordance with the details above.

Employer name and address

Postcode

Date DD MM YYYY

P45(Manual) Part 3

HMRC 04/08

Click for PDF Form

File Characteristics

Fact Name	Detail
Purpose of the Form	The P45 form is used in the UK to detail an employee's salary and taxes paid up until they leave a job. It is divided into parts for HM Revenue & Customs (HMRC), the employee, and the new employer.
Student Loan Deductions	The form includes sections for indicating whether student loan deductions are due to be made, which is essential for both the former and new employers to correctly manage deductions.
Week 1/Month 1 Tax Code	Special tax codes, like 'Week 1/Month 1', are used on the P45 to adjust tax calculations. This code can significantly impact the initial tax paid in the new employment.
Handling by New Employer	The new employer must use the P45 parts 2 and 3 received from an employee to update their payroll records, ensuring the correct tax code and student loan deductions are applied from the employee's start date.

Steps to Writing P 45 It

After an employee leaves their job, their employer must fill out a P45 form. This document is essential as it details an employee's earnings and tax deductions during their employment. Filling out this form accurately ensures that the departing employee's tax affairs are in order for their next job, or if they're claiming any benefits. Below are the detailed steps required to fill out the P45 Part 1 form, which is to be sent to HM Revenue & Customs (HMRC).

Access the online portal: File your employee's P45 online at www.hmrc.gov.uk.
Use capital letters: Ensure all information is entered in capital letters.
Enter your Employer PAYE reference found in box 1, followed by the Student Loan deductions indicator in box 5, stating 'Y' if applicable.
In box 2, fill in the Employee's National Insurance number.
For the Tax Code at leaving date in box 6, include any relevant adjustments, such as 'X' for week 1 or month 1 basis.
Select the correct title (MR, MRS, MISS, MS, or other) and enter it in box 3.
In boxes 7 and 12, list the last entries on the P11 Deductions Working Sheet, including week and month number, total pay, and total tax to date. If there are no changes for box 12, leave it blank.
Include the surname, first name(s), leaving date (DD MM YYYY), and the employee's private address.
State the total pay and tax in this employment in the respective sections.
Add the works number/payroll number and department or branch, if any.
Complete the employer certification section, confirming the accuracy of the entered details.
Include the employer name and address, specify the employee's gender by checking the appropriate box, and fill in their date of birth.
Lastly, if the employee has died, mark 'D' in the designated box and send all parts of this form to your HMRC office immediately.

After completing Part 1 of the P45 form, it is imperative to send it to HMRC promptly. Additionally, the remaining parts of the P45 – Parts 1A, 2, and 3 – must be handled according to the instructions provided. These include handing 1A, 2, and 3 to the departing employee or dealing with them as directed if the situation involves a new employer or claims for benefits. Careful attention to each step ensures compliance with tax regulations and facilitates a smoother transition for the employee into their new role or situation.

Important Details about P 45 It

What is a P45 form?

A P45 form is an official document provided by an employer when an employee leaves a job. It summarizes the employee's salary and the taxes deducted from their earnings during the employment period. The form comes in three parts, parts 1A, 2, and 3, and contains critical information necessary for managing taxes and transitioning to a new job or claiming benefits.

Why do I need a P45 form?

You need a P45 form to ensure that you are taxed correctly in your new job or when claiming state benefits. It helps your new employer or the government to understand how much tax you've paid so far in the tax year, ensuring any tax refund due to you is accurately calculated, or that you're taxed appropriately moving forward.

Who issues the P45 form?

Your previous employer is responsible for issuing the P45 form when you stop working for them. The form must be provided shortly after your employment ends, as it contains essential information required for your tax records.

What do I do with my P45 form when I receive it?

Keep part 1A for your records. If you're starting a new job, give parts 2 and 3 to your new employer. They'll use this information to ensure you're put on the correct tax code. If you're claiming Jobseeker's Allowance or another type of benefit, take the form to your Jobcentre Plus or the relevant government office.

What if I lose my P45 form?

If you lose your P45 form, notify your new employer or the office handling your benefits claim as soon as possible. They can tell you the steps you need to take. You might be put on an emergency tax code until HM Revenue and Customs (HMRC) can process the correct tax code based on your estimated annual income.

Can I get a duplicate P45 form?

No, your employer cannot issue a duplicate P45 form. If you lose your P45, you will work with HMRC and your new employer to resolve your tax code based on estimated earnings or receive guidance on how to proceed without the form.

What happens to my P45 when I start a new job?

When you start a new job and provide parts 2 and 3 of your P45 to your new employer, they will use it to update your tax records and ensure you are placed on the correct tax code. This process helps in avoiding any unnecessary emergency tax charges.

How does the P45 form affect my tax credits?

Changes in your income, such as starting a new job or stopping work, can affect the amount of tax credits you're entitled to. You should inform the Tax Credits office about any changes in your circumstances to ensure you receive the correct amount of tax credits. The information on your P45 form can help you provide accurate details about your income.

Common mistakes

Filling out the P45 form can often be a complex process, with several potential pitfalls that can lead to inaccuracies or misunderstandings. One common mistake involves the incorrect use of capital letters. The form specifically requires that all entries be completed in capital letters to ensure clarity and legibility. Failure to adhere to this instruction might result in processing delays or errors in the employee's records.

Another area where errors frequently occur is the handling of the Tax Code at the leaving date. Employers must enter the correct code; however, misunderstandings or typos can lead to the wrong code being recorded. This seemingly minor error can have significant implications, affecting the individual’s tax liabilities and potentially leading to either underpayment or overpayment of tax.

The section requiring details about Student Loan deductions is also prone to errors. The form requires a 'Y' entry if deductions are to be made, but employers sometimes overlook this section or misunderstand the criteria for deductions. This mistake can result in discrepancies in the repayment records, causing unnecessary complications for the employee.

Incorrect entries regarding the employee's last payment and deductions can also be problematic. These figures must match the last entries on the P11 Deductions Working Sheet exactly. Any deviation, whether from oversight or misinterpretation of the form’s instructions, can misrepresent an employee’s earnings and tax paid, leading to errors in their tax records.

Last but not least, the employee’s personal details, including their address and National Insurance number, are crucial for accurate processing. Any errors in these fields can lead to misdirected communications or issues with the employee’s national insurance contributions and benefits. Ensuring these details are correct is paramount for the smooth processing of the P45 form.

Documents used along the form

When handling employment transitions, several forms and documents are often used alongside the P45 form. Each of these plays a crucial role in ensuring that both employers and employees comply with tax and legal requirements, helping to facilitate a smooth transition for those changing jobs or leaving employment.

New Starter Checklist - This document is crucial for employers when onboarding new employees who do not have a P45. It collects the necessary information to determine the correct tax code to use before the first payroll. This checklist includes details on student loan repayments and identifies any other jobs.
P11 Deductions Working Sheet - Employers use this form to keep track of an employee's pay and deductions throughout the tax year. It's essential for maintaining accurate payroll records, ensuring that tax and National Insurance contributions are correctly calculated.
P60 End of Year Certificate - Issued to employees at the end of the tax year, this document summarizes their total pay and deductions for the year. Employees often need it for tax return purposes or to claim back overpaid tax.
P50 Claiming Tax Back - Individuals who have stopped working mid-year and do not plan to claim Jobseeker's Allowance or other benefits can use this form to claim a tax refund. It's particularly useful for those who have overpaid tax during the tax year.

Understanding and utilizing these documents in conjunction with the P45 form can significantly streamline the administrative aspects of employment changes, ensuring accurate tax payments and compliance with legal requirements. It's essential for both employers and employees to be aware of these documents to navigate the process of changing jobs or leaving employment as seamlessly as possible.

Similar forms

The W-2 Form, officially known as the Wage and Tax Statement, shares similarities with the P45 in that it provides details about an employee's income and taxes deducted during employment. Both documents are essential for tax filing purposes. The W-2 is used in the United States to report wages paid to employees and the taxes withheld from them, much like the P45 reports an employee's pay and taxes up to the point of leaving their job in the U.K.

The 1099-MISC Form, used in the U.S. for reporting payments made to freelancers and independent contractors, compares to the P45 by serving a similar tax-reporting function, albeit for different employment types. Like the P45, which is used by those in traditional employment when they leave a job, the 1099-MISC captures income details necessary for tax purposes, but for those not directly employed by a company.

The P60 Form is a close relation to the P45 within the U.K. tax system, summarizing an employee's total pay and deductions for the year. While the P45 is given to employees when they leave a job, the P60 is provided at the end of the tax year for current employees. Both forms are crucial for ensuring accurate income tax records and calculations.

Form P11D in the U.K. records expenses and benefits provided to employees and directors, sharing a commonality with the P45 in its role of documenting financial information related to employment. Whereas the P45 focuses on salary and tax paid up to employment termination, the P11D captures additional perks, influencing tax liabilities.

The New Hire Reporting Form, mandatory in the U.S., is akin to the P45 in its employment-change context, although from an opposite starting point. It's used by employers to report new or rehired employees to a state directory, facilitating child support enforcement, quite different from the P45's role in marking the end of an employment relationship.

Form I-9, the Employment Eligibility Verification in the U.S., while serving a distinct purpose from the P45, overlaps in its employment lifecycle relevance. The I-9 verifies an employee's legal right to work in the U.S., necessary at the beginning of employment, as opposed to the P45, which is issued when employment concludes.

The P46 Form, now replaced by the starter checklist in the U.K., was initially used for new employees without a P45. This form's intent closely aligns with the P45 by focusing on tax details at the start of employment, ensuring correct tax codes are applied, just as the P45 ensures correct final tax calculations.

The Employment and Support Allowance (ESA) forms in the U.K., specially designed for individuals unable to work due to illness or disability, intersect with the P45 contextually. Post-employment, the P45 aids in tax matters, while the ESA helps individuals sustain themselves financially when employment is not an option.

The P50 Form, used by individuals to claim tax refunds in the U.K. after employment has ended and if they are not working, complements the P45. The P45 provides necessary employment and tax details that help in filling out the P50, demonstrating their interconnected roles in managing tax affairs post-employment.

Lastly, the TC600 Form, for claiming Tax Credits in the U.K., while not directly linked to employment termination like the P45, still connects in terms of financial changes. Both forms play roles in adjusting to changing financial circumstances, with the P45 marking employment end and the TC600 aiding in securing financial support through tax credits.

Dos and Don'ts

Filling out a P45 form is an essential step in ensuring a smooth transition for employees leaving a work position. To navigate this process effectively, here are five things you should and shouldn’t do.

What to Do:

Use capital letters: It is important to fill out the form in capital letters to ensure clarity and prevent errors in processing.
Double-check figures for accuracy: Before submitting the P45 form, verify all figures, especially in sections regarding total pay and tax to date, to avoid discrepancies.
Fill in all applicable sections: Each part of the P45 has its specific purpose. Ensure you complete sections applicable to your situation, such as student loan deductions or week 1/month 1 indicators.
Retain copies for records: After completing and sending the necessary parts to HMRC and the departing employee, keep a copy for your records. This could be vital for future reference.
Submit Part 1 to HMRC immediately: Timeliness is crucial in submitting Part 1 of the P45 form to HMRC. This keeps records up to date and helps ensure the employee's tax situation is accurately reflected.

What Not to Do:

Do not leave sections blank: Unless instructed, such as in certain tax code situations, make sure all relevant sections are filled out to avoid processing delays or errors.
Do not guess information: If unsure about any details, it’s better to verify the correct information before completing the form. Guessing can lead to errors with potential consequences.
Do not overlook the employee’s leaving date: The leaving date is crucial for accurate record-keeping and affects tax calculations. Ensure it is correctly entered in the format DD MM YYYY.
Do not ignore special instructions: Certain scenarios, like if an employee has died, require specific actions such as entering 'D' in the designated box. Pay attention to these special instructions.
Do not mishandle student loan deductions: Be precise when indicating whether a student loan deduction is due. Incorrect information can affect the employee’s financial obligations.

Misconceptions

Understanding the P45 form is crucial for both employees and employers. However, several misconceptions often lead to confusion. Below are nine common misunderstandings explained:

Only the employer needs to understand the form: It's presumed that the P45 form is solely for employer comprehension. In reality, both the employee and employer must understand the form, as it contains vital tax information relevant to both parties.
Student Loan deductions don't matter if you're changing jobs: Many believe changing jobs nullifies previous arrangements regarding Student Loan deductions. On the contrary, the P45 includes sections specifically to ensure continuity in Student Loan repayments across employment transitions.
Week 1/Month 1 Tax Code doesn't require immediate attention: There's a misconception that if an employee is placed on a Week 1/Month 1 Tax Code, it can be dealt with later. However, addressing it immediately with HMRC is necessary to avoid potential tax issues.
The form is the same for every employee: Every P45 is tailored to the individual employee, containing their unique employment and tax history. Understanding each section is crucial for accurate Tax Code assignments and Student Loan deductions.
The form doesn't influence tax refunds: A common misunderstanding is that the P45 form has no impact on tax refunds. The form actually plays a significant role in determining if an employee is due a tax refund when leaving a job or at the fiscal year-end.
New employers don't need the entire form: Some believe new employers only need specific parts of the P45. However, new employers require the complete form to process the employee's tax correctly.
If you lose your P45, it's easily replaceable: Unlike other documents, if a P45 is lost, it cannot be reissued. Safeguarding the form is essential because its information is crucial for tax purposes and for starting new employment.
All sections must be completed: On the contrary, some sections of the P45 are to be left blank under certain conditions, such as if the Week 1/Month 1 Tax Code applies, indicating the specific tax mechanism to be used by the employer.
The form is only for individuals who are employed: Even if an individual is not employed, their P45 holds vital information for claiming tax refunds or for Jobseeker's Allowance and Employment and Support Allowance (ESA) applications, demonstrating its broader significance beyond just employment.

Clearing up these misconceptions ensures that both employees and employers can manage transitions and tax matters efficiently and accurately. The P45 is a pivotal document in the UK's tax and employment system, warranting a comprehensive understanding for smooth administrative processes.

Key takeaways

Filling out the P45 form accurately is essential for both employees leaving their jobs and their employers. This document records an employee's pay and tax details up to their leaving date, requiring careful attention to detail. Below are five important takeaways regarding the completion and use of the P45 form:

Utilize capital letters when completing the P45 form to ensure clarity and avoid any potential misunderstandings or processing delays with HM Revenue & Customs (HMRC).
If an employee has a Student Loan and deductions are ongoing, it's critical to mark 'Y' in the designated section of the form, indicating that deductions should continue. This ensures accurate handling of the employee's financial obligations.
For those employees assigned a week 1 or month 1 tax code, indicating it on the form by entering 'X' in the specified box is crucial. This tax code is used to calculate taxes on a non-cumulative basis, affecting how much tax the employee pays for the rest of the tax year.
Every section filled out on the P45 should reflect accurate and up-to-date information, including total pay and tax to date, to avoid discrepancies that could impact the employee's tax records or future job commencements.
For employees transitioning to new employment, it's important to hand over Parts 2 and 3 of the P45 to the new employer promptly. This facilitates a smoother transition and ensures the new employer can accurately process the incoming employee's tax details. If an employee is not moving to a new job immediately, handling the P45 correctly still matters for benefits or tax refund claims.

Employers must also remember to send Part 1 of the P45 form to HMRC right after the employee leaves. This step is crucial for maintaining proper tax records and ensuring compliance. Both employers and employees should handle the P45 form with diligence to ensure all parties' financial and legal interests are secured.

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