The short version: A P45 is the document your employer gives you when you leave a job. It shows how much you earned and how much tax was deducted during your employment there. You need it when you start your next job.
What’s on a P45?
Your tax code, total pay for the tax year so far, total tax paid so far, and your National Insurance number. It comes in multiple parts. One goes to HMRC, one’s for you, and the rest go to your new employer.
Why is it important?
Your new employer uses it to put you on the right tax code. Without it, you might end up on emergency tax and pay more than you should until it gets sorted out.
What if you don’t have one?
Your employer can only issue one P45. If you’ve lost it, you’ll need to fill out a starter checklist for your new employer instead. They’ll contact HMRC to get your details.
Self employed too?
If you’re filing Self Assessment for self employment income, your P45 information helps you report your employed earnings accurately.
Changing jobs and not sure about the paperwork? Ask us if you need any help.
