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Free P 45 It PDF Template

The P45 form is an important document in the United Kingdom that details an employee's departure from work. It serves multiple key purposes, including informing HM Revenue & Customs (HMRC) of an employee's termination of employment and facilitating the transfer of tax and employment information to a new employer or for the employee's personal records. This form is divided into parts, each having its specific use and recipient, from HMRC to the employee, and potentially, a new employer.

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Outline

Transitioning from one job to another involves various procedures, one of which includes handling the P45 form, a crucial document in the United Kingdom's tax system managed by Her Majesty's Revenue and Customs (HMRC). Essentially, the P45 form comprises details related to an employee leaving work and serves multiple purposes such as providing a record of the employee's pay and taxes deducted during the employment period. Notably, the form is divided into several parts: Part 1 is sent to HMRC by the employer, Parts 1A, 2, and 3 are provided to the employee, where Part 1A is for the employee's personal records, and Parts 2 and 3 are for the new employer or Jobcentre if the individual is claiming Jobseeker's Allowance or Employment and Support Allowance. This form captures critical information such as the employee’s National Insurance number, tax code, and details of earnings and tax payments. Student loan deductions, if applicable, are also noted, ensuring a smooth transition and accurate tax treatment for individuals moving between jobs. Additionally, special instructions are included for employees moving to new employment, claiming jobseeker's benefits, or going abroad, underscoring the P45's role in managing tax affairs efficiently. Furthermore, guidelines for employers receiving a new employee's P45 are provided to ensure the continuity and accuracy of the tax records, thus embodying the form's comprehensive utility in employment transitions.

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P45 Part 1

Details of employee leaving work

Copy for HM Revenue & Customs

File your employee's P45 online at www.hmrc.gov.uk

Use capital letters when completing this form

Employer PAYE reference

Student Loan deductions

Office number

Reference number

Enter 'Y' if Student Loan deduction is due to be made

Tax Code at leaving date

Employee's National Insurance number

If week 1 or month 1 applies, enter 'X' in the box below.

Title – enter MR, MRS, MISS, MS

or other title

Week 1/Month 1

Last entries on P11 Deductions Working Sheet.

Surname or family name

Complete only if Tax Code is cumulative. Make no entry

if week 1 or month 1 applies, go straight to box 8.

Week number

Month number

First or given name(s)

Total pay to date

•

Leaving date DD MM YYYY

Total tax to date

•

Employee’s private address

This employment pay and tax. Leave blank if the Tax Code

is cumulative and the amounts are the same as box 7.

Total pay in this employment

•

Total tax in this employment

Postcode

•

Works number/Payroll number and Department or branch

(if any)

I certify that the details entered in items 1 to 11 on

this form are correct.

Employer name and address

Gender. Enter ‘X’ in the appropriate box

Male

Female

Date of birth DD MM YYYY

Postcode

Date DD MM YYYY

When an employee dies. If the employee has died

enter 'D' in the box and send all four parts of this

form to your HMRC office immediately.

Instructions for the employer

•Complete this form following the 'What to do when an employee leaves' instructions in the Employer Helpbook E13 Day-to-day payroll. Make sure the details are clear on all four parts of this form and that your name and address is shown on Parts 1 and 1A.

•Send Part 1 to your HM Revenue & Customs office immediately.

•Hand Parts 1A, 2 and 3 to your employee when they leave.

P45(Manual) Part 1

HMRC 04/08

P45 Part 1A

Details of employee leaving work

Copy for employee

Employer PAYE reference

Student Loan deductions

Office number

Reference number

Student Loan deductions to continue

Tax Code at leaving date

Employee's National Insurance number

If week 1 or month 1 applies, enter 'X' in the box below.

Title – enter MR, MRS, MISS, MS

or other title

Week 1/Month 1

Last entries on P11 Deductions Working Sheet.

Surname or family name

Complete only if Tax Code is cumulative. If there is an ‘X’

at box 6 there will be no entries here.

Week number

Month number

First or given name(s)

Total pay to date

•

Leaving date DD MM YYYY

Total tax to date

•

Employee’s private address

This employment pay and tax. If no entry here, the amounts

are those shown at box 7.

Total pay in this employment

•

Total tax in this employment

Postcode

•

Works number/Payroll number and Department or branch

(if any)

I certify that the details entered in items 1 to 11 on

this form are correct.

Employer name and address

Gender. Enter ‘X’ in the appropriate box

Male

Female

Date of birth DD MM YYYY

Postcode

Date DD MM YYYY

To the employee

The P45 is in three parts. Please keep this part (Part 1A) safe. Copies are not available. You might need the information in Part 1A to fill in a Tax Return if you are sent one.

Please read the notes in Part 2 that accompany Part 1A. The notes give some important information about what you should do next and what you should do with Parts 2 and 3 of this form.

Tax credits

Tax credits are flexible. They adapt to changes in your life, such as leaving a job. If you need to let us know about a change in your income, phone 0845 300 3900.

To the new employer

If your new employee gives you this Part 1A, please return it to them. Deal with Parts 2 and 3 as normal.

P45(Manual) Part 1A

HMRC 04/08

P45 Part 2 Details of employee leaving work

Copy for new employer

Employer PAYE reference

Office number Reference number

Employee's National Insurance number

Title - enter MR, MRS, MISS, MS or other title

Surname or family name

First or given name(s)

Leaving date DD MM YYYY

5Student Loan deductions

Student Loan deductions to continue

6Tax Code at leaving date

If week 1 or month 1 applies, enter 'X' in the box below. Week 1/Month 1

7Last entries on P11 Deductions Working Sheet. Complete only if Tax Code is cumulative. If there is an ‘X’ at box 6, there will be no entries here.

Week number			Month number
Total pay to date

£ •

Total tax to date

£ •

To the employee

This form is important to you. Take good care of it and keep it safe. Copies are not available. Please keep

Parts 2 and 3 of the form together and do not alter them in any way.

Going to a new job

Claiming Jobseeker's Allowance or

Employment and Support Allowance (ESA)

Take this form to your Jobcentre Plus office. They will pay you any tax refund you may be entitled to when your claim ends, or at 5 April if this is earlier.

Give Parts 2 and 3 of this form to your new employer, or you will have tax deducted using the emergency code and may pay too much tax. If you do not want your new employer to know the details on this form, send it to your HM Revenue & Customs (HMRC) office immediately with a letter saying so and giving the name and address of your new employer. HMRC can make special arrangements, but you may pay too much tax for a while as a result of this.

Going abroad

Not working and not claiming Jobseeker's Allowance or Employment and Support Allowance (ESA)

If you have paid tax and wish to claim a refund ask for form P50 Claiming Tax back when you have stopped working from any HMRC office or Enquiry Centre.

Help

If you need further help you can contact any HMRC office or Enquiry Centre. You can find us in The Phone Book under HM Revenue & Customs or go to www.hmrc.gov.uk

If you are going abroad or returning to a country

outside the UK ask for form P85 Leaving the United Kingdom from any HMRC office or Enquiry Centre.

Becoming self-employed

You must register with HMRC within three months of becoming self-employed or you could incur a penalty. To register as newly self-employed see The Phone Book under HM Revenue & Customs or go to www.hmrc.gov.uk

to get a copy of the booklet SE1 Are you thinking of working for yourself?

To the new employer

Check this form and complete boxes 8 to 18 in Part 3 and prepare a form P11 Deductions Working Sheet. Follow the instructions in the Employer Helpbook E13 Day-to-day payroll, for how to prepare a P11 Deductions Working Sheet. Send Part 3 of this form to your HMRC office immediately. Keep Part 2.

P45(Manual) Part 2

HMRC 04/08

P45 Part 3

New employee details

For completion by new employer

File your employee's P45 online at www.hmrc.gov.uk

Use capital letters when completing this form

Employer PAYE reference

Student Loan deductions

Office number Reference number

Student Loan deductions to continue

Tax Code at leaving date

Employee's National Insurance number

If week 1 or month 1 applies, enter 'X' in the box below.

Title – enter MR, MRS, MISS, MS or other title

Week 1/Month 1

Last entries on P11 Deductions Working Sheet.

Surname or family name

Complete only if Tax Code is cumulative. If there is an ‘X’

at box 6, there will be no entries here.

Week number

Month number

First or given name(s)

Total pay to date

•

Leaving date DD MM YYYY

Total tax to date

•

To the new employer Complete boxes 8 to 18 and send P45 Part 3 only to your HMRC office immediately.

New employer PAYE reference

Office number Reference number

Employee's private address

9Date new employment started DD MM YYYY

10Works number/Payroll number and Department or branch (if any)

11Enter 'P' here if employee will not be paid by you between the date employment began and the next 5 April.

12Enter Tax Code in use if different to the Tax Code at box 6

If week 1 or month 1 applies, enter 'X' in the box below. Week 1/Month 1

13If the tax figure you are entering on P11 Deductions Working Sheet differs from box 7 (see the E13 Employer Helpbook Day-to-day payroll) please enter the

figure here.

£ •

14New employee's job title or job description

Postcode

16Gender. Enter ‘X’ in the appropriate box

Male

Female

17Date of birth DD MM YYYY

Declaration

18I have prepared a P11 Deductions Working Sheet in accordance with the details above.

Employer name and address

Postcode

Date DD MM YYYY

P45(Manual) Part 3

HMRC 04/08

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Document Attributes

Fact	Description
Form Purpose	The P45 form is used in the UK to detail an employee's departure from work and includes their PAYE reference, tax code, and deductions.
Parts Distribution	Part 1 is for HM Revenue & Customs, Part 1A is for the employee, Part 2 and Part 3 are for the new employer or for the employee if not immediately re-employed.
Key Contents	It contains information such as employer PAYE reference, Student Loan deductions, tax code at leaving, National Insurance number, and total pay and tax to date.
Special Instructions	Employers must fill out the form when an employee leaves, immediately send Part 1 to HMRC, and give Parts 1A, 2, and 3 to the employee.
Governing Law	UK tax legislation governs the requirements and usage of the P45 form, as managed by HM Revenue & Customs (HMRC).

How to Fill Out P 45 It

Filling out the P45 form is essential when an employee leaves their job. This document, crucial for both tax purposes and the transition of the employee to a new job or unemployment benefits, must be handled with attention to accuracy and detail. The steps provided below will guide employers through the process of completing the form properly, ensuring all information is recorded correctly for HM Revenue & Customs (HMRC).

Visit the HMRC website to file your employee's P45 online.
Use capital letters throughout the form to ensure clarity.
Enter the Employer PAYE reference and the Office number along with the Reference number in the designated fields.
If the employee had Student Loan deductions, enter 'Y' in the appropriate field.
Fill in the employee's National Insurance number.
Indicate the Tax Code at the leaving date, and mark with an 'X' if week 1 or month 1 applies.
Provide the employee's Title (MR, MRS, MISS, MS, etc.) and their Surname or family name.
Enter the employee’s First or given name(s).
Write down the Leaving date in the format DD MM YYYY.
Record the employee’s private address, including the Postcode.
Include the Works number/Payroll number and Department or branch if applicable.
State the Total pay to date and Total tax to date in the appropriate boxes.
If applicable, provide the Total pay in this employment and Total tax in this employment, leaving blank if the Tax Code is cumulative and amounts are the same as in box 7.
Certify the correctness of the details filled in by entering the Employer name and address.
Indicate the employee's Gender by entering 'X' in the appropriate box.
Enter the Date of birth of the employee in the format DD MM YYYY.
Sign off the form with the Date in the format DD MM YYYY.
If applicable, enter 'D' in the designated box when an employee dies and send all four parts of the form to the HMRC office immediately.

Upon completing the form, remember to send Part 1 to your HM Revenue & Customs office as soon as possible. Hand over Parts 1A, 2, and 3 to the departing employee. This process is not just a formality but a significant step in ensuring everything is squared away for both the employer and employee in terms of taxes and future employment.

More About P 45 It

What is a P45 form and when is it used?

The P45 form is a document provided by an employer to an employee when they leave their job. It details the employee's tax code, National Insurance number, and the earnings and tax paid during the tax year up to their leaving date. This form is crucial for ensuring the employee is placed on the correct tax code with their new employer and for making any claims for tax refunds or benefits.
What are the different parts of the P45 form?

The P45 form is divided into four parts:
- Part 1: Sent by the employer to HM Revenue & Customs (HMRC).
- Part 1A: Retained by the employee for personal records.
- Part 2 and 3: Given to a new employer or to the Jobcentre if the employee is claiming unemployment benefits.
It's important for employees to keep Part 1A safe, as copies are not available later.
What should I do if I receive a P45?

If you receive a P45 after leaving a job, it's vital to keep Part 1A safe for your records. If you start a new job, Parts 2 and 3 should be given to your new employer to ensure you're on the correct tax code. If you're claiming Jobseeker's Allowance or Employment and Support Allowance, take Parts 2 and 3 to your Jobcentre Plus office.
How do student loan deductions work with a P45?

If you were making student loan repayments through your employer, this information is noted on your P45. Your new employer will continue the deductions if applicable. It's important that student loan deductions are correctly noted as 'Y' on the P45 form to maintain accurate repayment records.
What if my new employer doesn't receive my P45?

If you cannot provide a P45 to your new employer, they may place you on an emergency tax code until they receive the P45. This might result in higher tax deductions initially. However, once your new employer receives the correct information either through the P45 or directly from HMRC, any overpaid tax will typically be refunded through your salary.
Can I claim a tax refund if I'm not working or going abroad?

If you've paid more tax than you owe by the time you leave your job, you may be eligible for a refund. If you're not working, going abroad, or not claiming Jobseeker's Allowance or Employment and Support Allowance, you can claim a tax refund using form P50 or P85, respectively. It's important to fill out and submit these forms to HMRC to process your refund.

Common mistakes

Completing the P45 form accurately is crucial when an employee is leaving a job, as mistakes can lead to issues with tax records and potential delays for the employee getting started in new employment. Below are ten common mistakes people make on the P45 form:

Failing to use capital letters where required, which can lead to misinterpretation of the information provided.
Incorrectly stating the existence of a Student Loan deduction by omitting or inaccurately entering the 'Y' for yes when it is due, which could affect financial records.
Entering an incorrect National Insurance number, leading to potential issues with the employee's tax records.
Not properly indicating if Week 1/Month 1 tax code applies, which can result in incorrect tax calculations for the employee.
Misunderstanding the tax code section and either leaving it blank or filling it incorrectly, impacting tax deductions.
Forgetting to include the leaving date, which is necessary for accurately closing off the employee's records.
Omitting or inaccurately reporting total pay and tax to date, which are critical for ensuring correct end-of-year tax calculations.
Not providing the employee’s complete private address, potentially affecting communication regarding their tax affairs.
Mishandling the parts of the form meant for HM Revenue & Customs, the employee, and the new employer, which can cause confusion and administrative problems.
Inaccurately certifying that the details on the form are correct without thoroughly checking the entered information.

It's essential to approach the P45 with careful attention to detail to avoid these errors. Thus, employers should verify the completeness and accuracy of all information on the form before submission to HM Revenue & Customs and also ensure that the employee receives their parts of the form without delay.

Documents used along the form

When managing the departure of an employee, organizations must address several essential documents besides the P45 form. The P45 is instrumental in detailing an employee's tax information upon their leaving, yet it is merely one piece of a comprehensive puzzle in employee turnover and financial documentation.

New Starter Checklist: Employers use this form to collect information from new employees who don't have a P45 from previous employment. It helps determine the correct tax code before their first payday.
P11 Deductions Working Sheet: This document records the deductions made from employee earnings. It includes details like tax and National Insurance contributions, supporting accurate P45 completions.
P60 End of Year Certificate: Issued at the end of the tax year, the P60 summarizes an employee's total pay and deductions for the year. It’s vital for employees' personal records and future financial assessments.
P46 Form: Employed when a new employee doesn’t have a P45, the P46 helps employers submit new employee data to HM Revenue & Customs (HMRC) and determine the correct tax code.
Contract of Employment: Although not a tax document, this legal document outlines the terms and conditions of employment. It might need updating or reviewing when an employee leaves.
Exit Interview Forms: Used to gather feedback on the employee's experience, these contribute to organizational improvements and might accompany the departure process.
PAYE Settlement Agreement (PSA): The PSA is an agreement with HMRC allowing the employer to make one annual payment to cover all tax and National Insurance due on minor, irregular, or impracticable expenses or benefits for employees.
Employment Termination Letter: Formal notification of employment termination, providing clarity and official documentation of the employee's departure date and reasons.
Redundancy Documentation: If an employee is leaving due to redundancy, specific documents outlining the redundancy process, selection criteria, and any severance payments are necessary.
Self-Assessment Tax Return Forms: These might be relevant for individuals transitioning into self-employment or those with additional income sources needing to declare their income to HMRC post-employment.

Each document plays a unique role in ensuring the smooth transition of exiting employees, maintaining compliance with legal and tax obligations, and providing both parties with the necessary records for future reference. Proper completion and handling of these documents minimize risks and pave the way for a clear, structured employment termination process.

Similar forms

W-2 Form (U.S. Wage and Tax Statement): Similar to the P45 in that it provides details about an employee's earnings and tax deductions over a fiscal year. However, the W-2 is used in the United States for tax filing purposes to report wages paid and taxes withheld by employers.
W-4 Form (Employee's Withholding Certificate): While the W-4 is used in the U.S. to determine the amount of taxes to withhold from an employee's paycheck, it shares a common purpose with the P45 in managing tax obligations. The P45 includes information necessary for determining correct tax codes and adjustments similar to initial withholding information provided by a W-4.
P60 Form (End of Year Certificate): This UK document is akin to the P45 in that it details an employee’s taxable income and tax paid for the year. However, the P60 is given to employees still employed at the end of the tax year, whereas the P45 is provided when an employee leaves a job.
I-9 Form (Employment Eligibility Verification): While serving a different primary function—verifying the eligibility of U.S. employees to work—the I-9 requires similar employer and employee information as the P45, such as personal details and employment status.
TD1 Form (Personal Tax Credits Return): Used in Canada, the TD1 resembles the P45 in its role of determining the amount of tax to be deducted from an individual’s employment income. Both forms take into account personal circumstances affecting tax obligations.
Payslip: Although not a formal tax document, a payslip provides ongoing information about an employee's pay and deductions, akin to the cumulative data summarized in a P45 document upon employment termination.
Schedule K-1 (U.S. Form for Partnerships): Similar to parts of the P45 that detail an individual's income and taxes paid, the Schedule K-1 provides information on the share of a partnership’s income, credits, and deductions. Though the context differs, both documents are crucial for accurate tax reporting.

Dos and Don'ts

Correctly filling out the P45 form is crucial when an employee leaves their job, as it impacts their tax records and future employment. Here are some essential dos and don'ts to consider:

Do ensure all information is accurate before submission. Incorrect details can lead to unnecessary hassle and confusion for both the employer and employee.
Do use capital letters throughout the form to keep the information clear and legible for the HM Revenue & Customs (HMRC).
Do check the employee's student loan status. If a deduction is due, enter 'Y' to indicate this; it's a crucial detail for tax purposes.
Do enter the correct tax code at the leaving date. If 'Week 1' or 'Month 1' applies, remember to mark 'X' in the box provided to ensure accurate tax calculations.
Do double-check the employee's National Insurance number for accuracy. This is a critical piece of information for the HMRC records.
Do include the total pay and tax to date under the correct sections. These figures are essential for the employee’s tax records and future tax calculations.
Do immediately send Part 1 to your HM Revenue & Customs office and provide the employee with Parts 1A, 2, and 3 upon their departure.

Don't leave any fields incomplete unless specified by the form instructions. For example, if 'Week 1' or 'Month 1' applies, only then should you leave certain tax fields blank.
Don't forget to enter the 'Leaving date' as DD MM YYYY. This date is critical for both the employer and the employee's records.
Don't ignore the specific instructions for 'Week 1/Month 1' tax codes. These details can significantly impact the accuracy of the employee’s tax calculations.
Don't use guesswork when completing the form. If uncertain about any details, verify the information before submission to avoid errors.
Don't delay sending the completed form to HMRC and handing over the relevant copies to the departing employee. Timely submission is crucial.
Don't neglect the importance of obtaining a signature on the form. The declaration section must be completed to certify the information's accuracy.
Don't mishandle the form once completed. Ensure safe and secure delivery to HMRC and the employee to protect the sensitive information contained within.

Navigating through the P45 form with these dos and don'ts in mind will ensure a smoother process for both employers and employees, making the transition less stressful and more efficient for all parties involved.

Misconceptions

Misunderstanding the P45 form can lead to unnecessary stress and confusion during what is already a period of transition. Let's clear up some common misconceptions to ensure a smoother process for both employees and employers.

All sections must be filled out in detail. While thoroughness is important, not every field will apply in all situations. For example, specific boxes are only to be completed under certain conditions, like student loan deductions or if the Tax Code is cumulative.
The form is only for the employer's records. Actually, the P45 is a multi-part document. While Part 1 is sent to HM Revenue & Customs (HMRC) by the employer, Parts 1A, 2, and 3 have different uses and distributions, including a copy for the employee to retain and parts for a new employer or for claiming tax benefits.
The tax details are too complicated for the employee to understand. Although tax details can be intricate, the P45 provides essential information, such as total pay and tax deducted, in a clear format. This information is crucial for the employee, especially when starting a new job or claiming a tax refund.
If an employee loses their P45, they can request a duplicate. Copies of the P45 are not available once issued. It's important for employees to keep their copy (Part 1A) safe because it contains necessary information for future employers or for tax purposes.
An employee does not need to provide their P45 to a new employer. Submitting the P45 to a new employer is vital for ensuring that tax codes and any student loan deductions are accurately processed, preventing emergency tax codes from being applied.
The form is only relevant if staying within the UK. The P45 and accompanying information can also be relevant for individuals who are leaving the UK, as specific forms and procedures may apply for claiming tax back or adjusting their tax status.
An employee can choose whether or not to declare their previous income and tax details to a new employer. While privacy concerns are understandable, withholding P45 information from a new employer can lead to incorrect tax deductions. However, if there are concerns, HMRC can provide guidance and potentially make special arrangements.

Understanding the P45's structure and purpose demystifies one of the many administrative tasks associated with changing jobs, allowing both employees and employers to manage the transition more effectively.

Key takeaways

When an employee is leaving a job, the P45 form plays a crucial role in ensuring tax details are correctly handled both for the departing employee and their employer. Here are key takeaways for filling out and using the P45 form:

Accuracy is paramount: Ensure all information, such as employee details and financial figures, is correct to avoid issues with HM Revenue & Customs (HMRC).
Use capital letters: When completing the form, fill it out in capital letters to improve clarity and reduce errors.
Employee's National Insurance number and tax details, including total pay and tax to date, must be accurately reported.
The leaving date must be clearly stated in the format DD MM YYYY.
For employees with Student Loan deductions, an 'Y' should be indicated if deductions are due to continue.
If applicable, use 'X' in the Week 1/Month 1 box to signify the starting point for tax calculations on a non-cumulative basis.
Employers must certify the form, confirming the details provided are correct before submission to HMRC and handing over the relevant parts to the employee.
Timely submission: Part 1 of the P45 form must be sent to HMRC immediately after the employee leaves.
Employees should retain Part 1A for their records, as duplicates are not available. This part contains important information needed for tax returns or future employment.
The form facilitates tax adjustments for changes such as leaving a job, becoming self-employed, or moving abroad, thus impacting subsequent tax claims and liabilities.
New employers should receive Parts 2 and 3 from the employee. These sections are vital for correctly processing the new employee’s tax code and ensuring the correct tax deductions.
If an employee does not want their new employer to know their previous salary details, they need to send the P45 to HMRC directly with a covering letter.

The P45 form is not just a document but a critical process in the transition of employment for both the employee and employer, governing accurate tax payments and ensuring compliance with tax laws. Every detail counts and proper handling of the form can save both parties potential future complications with tax authorities.

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