What is a P45 Form and How Do I Get One?

What is a P45 and how does it work?

A P45 is the document issued to employees by employers when you leave a job. It’s important for making sure that you’re taxed correctly in a new role and shows how much tax you’ve paid to date for the current tax year.

What does a P45 look like?

A P45 is a simple paper form and has 4 parts, Part 1, Part 1A, Part 2 and Part 3.

Under Real Time Information (RTI), employers report leaver details to HMRC electronically via the Full Payment Submission (FPS) – Part 1 is no longer sent to HMRC as a separate document.

Part 1A should be kept for records.

Parts 2 and 3 are given to the employee to pass onto their new employer.

What information is on a P45?

A P45 contains a few key details.

• The employee’s personal information (name, address, NI number).
• Employment details (start date, end date).
• Earnings and tax paid during the tax year.
• Tax code and pay details.

It’s important that everything on a P45 is accurate so you don’t end up overpaid or underpaid in your new role.

What is a P45 form used for? 

The P45 is mainly used by employees to provide their new employer with their earnings and tax information. It plays a vital role in ensuring that an individual is not taxed at a higher rate (emergency tax) and ensures the tax information is correct for the new role.

How and when do you get a P45?

How do I get a p45?

A P45 is issued by an employer when you finish a job. You should have your P45 by the time you leave your job and receive your final payslip.

How long does it take to get a p45?

A P45 should be issued on your last working day or soon after the final day of your employment. If you haven’t received your P45 after a few weeks you may need to follow up with your employer.

It’s important that you don’t delay this because it may lead to you overpaying tax in your new role.

Where do you get a P45 form as an employer?

Most employers access P45 forms via their payroll software. Employers can get P45 forms directly from HMRC.

How to get P45 online

Your P45 is usually given to you as a physical paper copy. It’s important to keep it safe when you receive it.

How long is a P45 valid for?

A P45 gives you details for the current tax year. As long as it is accurate, it will be valid for your new employer when they’re organising your tax.

It’s also important to keep hold of your P45 Part 1A so that you have your own record of your tax code and tax paid to-date for the year.

P45 and Emergency Tax

If you don't have a P45 when you start a new job, you may be placed on an emergency tax code. This can result in higher tax deductions until the correct tax details are updated. It can also mean you need to wait to get your money back where you’ve overpaid.

What to do if you’ve lost your P45 form

If you lose your P45, you can request a replacement from your former employer or contact HMRC for help .

Where can you find help with P45s?

For issues with your P45, you can seek guidance from

• HMRC's customer service.
• Your former employer.

Financial advisors, accountants or online guides for advice on tax implications.

Sources:

• https://www.gov.uk/paye-forms-p45-p60-p11d/p45
• https://www.gov.uk/get-paye-forms-p45-p60