The P45 form is a crucial document issued when an employee leaves their job, detailing their earnings and tax deductions. It consists of multiple parts, with each section serving a specific purpose for the employee, employer, and HM Revenue & Customs (HMRC). Understanding how to properly complete and manage this form is essential for ensuring accurate tax reporting and compliance.
The P45 form is an essential document for both employers and employees in the United Kingdom, particularly during the transition between jobs. This form is divided into three parts, each serving a specific purpose related to an employee's departure from a job. Part 1 provides crucial details about the employee's leaving date, total pay, and tax deductions to HM Revenue & Customs (HMRC). Employers must complete this section accurately and promptly, as it contains information that affects the employee's tax status. Part 1A is a copy for the employee, which they should keep safe for future reference, especially when filing a tax return or applying for tax credits. The final section, Part 2, is intended for the new employer, ensuring they have the necessary information to correctly process the employee's tax and payroll details. Completing the P45 correctly helps prevent issues such as overtaxation and ensures a smooth transition for the employee into their new role. Understanding the significance of this form can help both employers and employees navigate the complexities of employment changes with confidence.
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
The P45 form is a crucial document in the context of employment termination in the UK, serving various purposes for both employees and employers. Alongside the P45, several other forms and documents are often utilized to ensure a smooth transition for employees leaving a job. Below is a list of these documents, each accompanied by a brief description to clarify their significance.
These documents collectively play a significant role in the administrative processes surrounding employment termination. Each form serves a distinct purpose, facilitating necessary transitions and ensuring compliance with tax regulations. Understanding these forms can greatly assist employees in managing their financial responsibilities as they move from one employment situation to another.
Blank Profit and Loss Statement - Essential for assessing overall profitability of a business.
To facilitate the transfer of a mobile home in Virginia, it is essential to utilize the Virginia Mobile Home Bill of Sale, a document that provides clarity on the transaction process. This legally binding form ensures that both parties are protected and includes details such as the mobile home's description, the sale price, and the identities of the buyers and sellers. For more information and to access this important document, visit parkhomebillofsale.com/free-virginia-mobile-home-bill-of-sale/.
Odometer Disclosure Statement Ca - It must be completed accurately to ensure proper vehicle title transfer.
Here are some key takeaways about filling out and using the P45 It form:
The P45 form is a document issued by an employer when an employee leaves their job. It provides important information about the employee's earnings and the taxes paid during their employment. The form has several parts, which are used by both the employee and the new employer for tax purposes.
The P45 contains several key details, including:
This information is crucial for the employee’s tax records and for the new employer to correctly calculate tax deductions.
The P45 is made up of three parts: Part 1, Part 1A, and Part 2. Part 1 is sent to HM Revenue & Customs (HMRC), while Parts 1A and 2 are given to the employee. The employee must keep Part 1A safe, as it may be needed for future tax returns. Part 2 is provided to the new employer.
Upon receiving the P45, the employee should:
If an employee loses their P45, they should contact their previous employer to request a replacement. If this is not possible, the employee can still report their earnings and tax paid to HMRC using their last payslip or other documentation. It’s important to keep accurate records to avoid tax issues.
When starting a new job, providing Parts 2 and 3 of the P45 helps the new employer calculate the correct tax deductions. If the employee does not provide this information, they may be placed on an emergency tax code, leading to higher tax deductions until the correct details are updated.
Employers must complete the P45 accurately and promptly. They should send Part 1 to HMRC and provide Parts 1A, 2, and 3 to the employee. Employers should ensure that all details are clear and correct to avoid issues with tax reporting.
This is not true. The P45 form is required for any employee leaving a job, regardless of the reason. This includes resignations, layoffs, and even situations where an employee has passed away.
In reality, the P45 form is quite important. Employees should keep it safe as they may need it for tax purposes or when starting a new job. Discarding it can lead to complications with tax deductions.
This is incorrect. Both the employer and the employee have responsibilities when it comes to completing the P45. The employer must provide the form, while the employee must ensure their information is accurate.
These forms serve different purposes. The P45 is issued when an employee leaves a job, while the P60 is provided at the end of the tax year to summarize an employee's total pay and tax deductions for that year.