Stressed by tax?
Get Earnr Pro





A P45 is a document issued to an employee leaving their employer in the UK. It ensures that the employee has the correct tax code at their next job.

More detail:

A P45 is a document issued by employers in the United Kingdom to Employees who have finished working with them. It contains information about the employee's Tax Code and National Insurance contributions

There are 4 parts of a P45 that each have different roles. Part 1 of a P45 is sent to HMRC. Part 2 and 3 is given to your new employer or to Jobcentre Plus if you are not working. And, Part 1A is held by the employee for their own records.

A P45 is crucial as it ensures that the employee will be put on the correct Tax Code at their new place of employment. Otherwise, you might end up paying too much tax. A P45 may also be needed for Self-employed individuals when filing a Self Assessment.

An employer cannot issue a new P45 so if it is lost, the employee must fill in a 'starter checklist' with HMRC to calculate their Tax Code.

An example of a blank Part 1A P45 form is shown below:

A photo of a blank P45 Part 1A form

Back to Taxionary

You might also like...

decorative image for a blog

What is IR35 and do I need to worry about it?

There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.

Read more
decorative image for a blog

Flat rates for mileage vs actual expenses. What is better?

Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.

Read more
decorative image for a blog

What is the EIS and how does it work?

If you are looking to invest in small and medium sized businesses, the Enterprise Investment Scheme (EIS) provides lots of tax reliefs for doing so. Here we discuss what it is and how it works.

Read more
Earnr logoDownload earnr