A P45 is the document you receive when you leave a job. It provides a clear summary of your earnings and the tax you have paid during the current tax year.
Your employer must provide this document when your employment ends. This applies whether you resign, retire or face redundancy. In most cases, employers issue it shortly after they process your final pay.
What Information a P45 Includes
A P45 contains several important details about your employment and tax history. These details help HMRC and your new employer understand your position clearly.
The document includes:
- Your leaving date
- Your total pay from 6 April to your leaving date
- The total tax you have paid so far
- Your current tax code
- Your National Insurance Number
- Your employer’s PAYE reference
These details allow your new employer to continue your tax calculations correctly. As a result, your tax position carries on smoothly without disruption.
The Four Parts of a P45
A P45 consists of four separate parts. Each part serves a specific purpose and goes to a different place.
Part 1
Your employer sends Part 1 directly to HMRC. This section includes your earnings, tax and National Insurance details. HMRC uses this information to update your official tax record.
Part 1A
You keep Part 1A for your own records. You should also store this document safely, as you may need it in the future.
For instance, you may need Part 1A when:
- Applying for benefits
- Claiming a tax refund
- Completing a Self Assessment tax return
- Providing proof of income for a mortgage or loan
Part 2 and Part 3
You give Parts 2 and 3 to your new employer when you start a new job. They use this information to calculate your tax and National Insurance Contributions.
If you are not working, you should give these parts to Jobcentre Plus instead. This ensures they process any benefits correctly.
If You Do Not Receive a P45
In some cases, employers may delay issuing a P45. If this happens, you should contact them and request it.
If they still do not provide it, you should contact HMRC for guidance. They can help you ensure your tax records remain accurate.
In the meantime, your new employer will ask you to complete a starter checklist. This form allows them to gather the information they need to set up your tax details.
If You Lose Your P45
You cannot request a replacement P45 if you lose it. For this reason, you should always store it safely.
If you do lose your P45, do not worry. As previously stated, you can complete a starter checklist instead. Your employer will use this information to assign a tax code.
You can also check your pay and tax details through your personal tax account or the HMRC app.
If Your P45 is Incorrect
You should always check your P45 carefully when you receive it.
If you notice incorrect pay or tax details, contact your previous employer. They should correct the information and issue an updated version.
If your employer cannot resolve the issue, you should contact HMRC. They can review your records and take action where needed.
If your tax code appears incorrect, your new employer will usually correct it after your first pay. However, you should still monitor your payslips to ensure everything remains accurate.
How Long a P45 is Valid For
A P45 remains valid for the tax year in which it is issued. This means it only applies until the end of that tax year.
If you start a new job in a different tax year, you may need to complete a starter checklist instead. This ensures your employer uses the correct tax information.
While the P45 has a limited validity period, you should keep it for at least 22 months after the tax year ends.
Do You Get a P45 When You Retire?
You will receive a P45 when you retire from employment. Your employer issues it in the same way as when leaving any job.
You should also provide the relevant information to your pension provider. This helps ensure you receive the correct tax treatment on your pension income.
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This article is for general informational purposes only and does not constitute legal or financial advice. While we aim to keep our content up to date and accurate, UK tax laws and regulations are subject to change. Please speak to an accountant or tax professional for advice tailored to your individual circumstances. Pi Accountancy accepts no responsibility for any issues arising from reliance on the information provided.