P45 Form: What It Is and What It Means for Your Tax
A P45 form is one of the most important documents you receive when leaving a UK job. Your employer issues it when your employment ends.
Understanding your P45 form helps you avoid the wrong tax deduction after a job change. This matters whether you are moving roles, claiming benefits, or accessing your pension.
The form carries your tax history from one employer to the next. Many people receive it without reading it closely, which can cause overpayments that take months to resolve.
This guide explains what a P45 form contains and what each part is used for. It also covers what to do if your form is lost, delayed, or contains errors.
What a P45 Form Contains and Why the Figures Matter
A P45 form records your total gross earnings from that employment in the current tax year. It also shows the total income tax deducted up to your leaving date.
The form includes the tax code your employer was using when you left. It also carries your National Insurance number and your employer’s PAYE reference.
These figures matter because your next employer uses them to set up your payroll correctly. Without them, they cannot reliably calculate your personal allowance position.
They have no way of knowing how much tax-free entitlement you have already used. A missing form typically triggers an emergency tax code, which tends to lead to higher deductions.
The form also records whether you had a student loan deduction in place. This lets your new employer continue those deductions without a break.
The Four Parts and Where Each One Goes
A P45 is made up of four separate parts, each serving a distinct purpose. Knowing where each part goes helps you avoid losing the section you need.
The four parts work as follows:
- Part 1 goes directly to HMRC from your departing employer. You do not handle this part yourself.
- Part 1A is yours to keep. You may need it for a Self Assessment tax return.
- Part 2 goes to your new employer, who forwards it to HMRC.
- Part 3 is also given to your new employer, who retains it for their records.
Holding on to the right part of your P45 and passing on what you should to your new employer is an easy way to keep your tax record up to date.
Delays can mean an emergency code is applied in the meantime.
P45 Form and Your Tax Code: How They Connect
Your tax code is one of the most significant details on your P45 form. It tells your new employer how much of your income to treat as tax-free.
They apply this code to calculate deductions from your very first payslip. Without it, they fall back on an emergency tax code.
If your P45 is not available when you start a new job, an emergency code is likely. This code often assumes you have used no personal allowance so far this tax year.
It may also treat your current role as your only income source. This frequently leads to more tax being deducted than is actually due.
In most cases, HMRC corrects the position once it receives the right information. However, the process can take several weeks, and overpaid tax is typically refunded through payroll.
Tip: Your HMRC personal tax account lets you check your current tax code and see any updates. You can also make changes directly if something looks wrong, without waiting for your employer to act.
When You Leave a Job: What Your Employer Must Do
Your employer must produce your P45 as soon as your employment ends. It usually arrives alongside your final payslip, in paper or electronic form.
Employers who fail to issue a P45 risk penalties from HMRC. Most therefore issue it as a matter of routine.
Your P45 covers only the period from the tax year start to your leaving date. It reflects only what you earned with that employer, not your total income from all sources.
It is worth keeping your P45 for at least six tax years. This remains good practice even after passing the relevant parts to your new employer.
P45 Form and Starting a New Job
Handing over your P45 form is one of the first steps when starting a new role. Your new employer needs it to set up your payroll record accurately.
If you do not have your P45 form, your employer may ask you to complete a starter checklist form. This replaced the older P46 form and gathers the details needed to calculate your tax.
The starter checklist reduces the risk of an emergency code being applied to your wages. Completing it accurately is therefore worthwhile.
Your P45 form can only be used once with a new employer. If you have already submitted a starter checklist, presenting it later may not update your tax code straight away.
What to Do If Your P45 Form Is Lost
Your first step is to contact your previous employer directly. Many store P45 records electronically and can issue a replacement copy.
HMRC cannot provide a replacement P45 form. If your previous employer has ceased trading, there are still ways to access your tax information.
- Your HMRC personal tax account and the HMRC app both hold your employment and earnings records. These can be used to check your tax history, though neither contains the P45 document itself.
- If you cannot obtain your P45 before starting a new job, ask your new employer for a starter checklist. Completing it accurately helps them apply the right tax code from your first payslip.
Where payslips from your previous role are available, share them with your new employer. They may help estimate your tax position while a replacement P45 is pursued.
P45 Form Errors: How to Check and What to Do
Errors on a P45 form are not uncommon, and catching them early saves time. Mistakes in gross pay or the tax figure can distort your records with HMRC.
The most frequent issues include an incorrect leaving date or a wrong tax figure. A tax code that no longer reflects your circumstances is also common.
Comparing your P45 form against your final payslip is a reliable first check. Any figure that does not match your payslip warrants a query.
If you find a discrepancy, contact the employer who issued the form promptly. They must correct the record and send an amended version to HMRC.
Reporting an error before your new employer runs payroll is important. It prevents the wrong figures carrying forward into future tax calculations.
P45 Form: Key Points to Remember
- A P45 form is your record of pay and tax with one employer during the tax year. Passing it to the right people quickly helps you avoid tax problems from day one.
- Your new employer relies on the P45 form to apply the correct tax code from your first payslip. Without it, an emergency tax code is often used, which may mean you overpay tax initially.
- If your P45 form shows incorrect figures, report this to the employer who issued it straight away. Errors left uncorrected can affect your tax position for the rest of the tax year.
- For workers leaving the UK, a P45 is needed when completing a P85 form for HMRC. Including it helps HMRC calculate and return any overpaid tax more quickly.
Key Takeaways
The most important points from this guide are summarised below:
- A P45 form records your gross pay and income tax paid up to your leaving date.
- Part 1A is yours to keep; Parts 2 and 3 go to your new employer or benefits office.
- The tax code on your P45 connects directly to how your new employer calculates deductions.
- A starter checklist can stand in for a P45 and reduce the risk of emergency tax.
- Replacement P45 forms are not available from HMRC — contact your previous employer first.
- Errors on a P45 should be reported to the issuing employer without delay.
P45 FAQs
Q1: What is a P45 form?
A P45 form is an official document your employer issues when you leave a job. It records your total gross pay and the income tax deducted up to your leaving date in the current tax year. It also contains your National Insurance number, tax code, and your employer’s PAYE reference. Your new employer uses this information to set up your payroll record correctly.
Q2: How do I get my P45?
Your employer is required to provide your P45 once your employment ends, typically alongside your final payslip. It may be issued in paper form or electronically, depending on your employer’s payroll system. If it has not arrived within a reasonable time, contact your previous employer to request it. HMRC cannot issue a P45 on your employer’s behalf.
Q3: What happens if I lose my P45?
If you lose your P45, your first step is to contact your previous employer, as many can reproduce a copy from their payroll records. HMRC cannot issue a replacement P45 form, but your employment and earnings records are accessible through your HMRC personal tax account and the HMRC app — though these show your tax information rather than the P45 document itself. If you are starting a new job and cannot get your P45 in time, ask your new employer for a starter checklist. Completing it accurately helps them apply the right tax code from your first payslip.
Q4: What is the difference between a P45 and a P60?
A P45 is issued when you leave a job and covers your earnings and tax from the start of that tax year to your leaving date. A P60 is issued annually at the end of each tax year and covers your full-year earnings and tax for every employment you hold. Employers produce a P60 for every current employee each April or May — a P45 is only produced when employment ends.
Q5: Can I start a new job without a P45?
Yes, you can start a new job without a P45. Your new employer may ask you to complete a starter checklist, which replaced the older P46 form, to gather the information needed to set up your payroll. Completing it accurately reduces the likelihood of an emergency tax code being applied to your wages. If your P45 becomes available after you have already started, you may still be able to provide it.
