P45 (tax)

A P45 is a UK tax form given to an employee when they leave a job. It details their pay and the amount of tax deducted from their salary during their employment in that tax year (which runs from April 6th to April 5th). It's officially titled "Details of employee leaving work" and is issued by the employer.

The P45 is a crucial document for the employee as it allows them to:

• Claim back any overpaid tax from HM Revenue & Customs (HMRC).
• Provide to their new employer so they can correctly deduct tax from their salary. Without a P45, the new employer will typically apply an emergency tax code, which might result in the employee paying more tax than necessary.
• Claim Jobseeker's Allowance or other benefits if unemployed.

A P45 consists of four parts:

• Part 1A: For the employee's own records.
• Part 2 & 3: For submission to Jobcentre Plus when claiming Jobseeker's Allowance or other benefits.
• Part 1: For submission to the new employer, or HMRC if unemployed.

The information contained on a P45 includes:

• The employee's National Insurance number.
• The employee's tax code.
• Total gross pay for the tax year to date.
• Total income tax deducted to date.
• The employer's PAYE reference number.
• The date the employee left the employment.

If an employee loses their P45, they should contact their former employer to request a copy. While employers are not legally obliged to provide a duplicate P45, they usually will. If a duplicate is not available, the employee can contact HMRC to explain their situation. HMRC may then issue a "Starting Checklist" for the employee to complete and provide to their new employer.