What is the P45 form?
The P45 form is an important document that an employer provides to an employee when they leave a job. It contains details about the employee's pay and tax deductions up to the date they leave. The form has several parts, with each part serving a specific purpose for the employee and the new employer.
Why do I need a P45?
You need a P45 to ensure that your new employer can correctly calculate your tax deductions. It helps prevent you from being placed on an emergency tax code, which could result in overpaying taxes. It also provides information necessary for filing your tax return if required.
What should I do if I lose my P45?
If you lose your P45, contact your previous employer as soon as possible. They can issue a replacement or provide you with the necessary details to complete your tax forms. Keep in mind that you may need to provide proof of your employment to receive a new copy.
What information is included on the P45?
The P45 includes your leaving date, total pay to date, total tax deducted, your National Insurance number, and your tax code. It also contains your employer's details and a declaration confirming the information is correct.
What should I do with Parts 2 and 3 of the P45?
You should give Parts 2 and 3 of the P45 to your new employer when you start your new job. These parts help your new employer set up your payroll correctly and ensure that your tax deductions are accurate.
Can I still claim tax credits if I leave my job?
Yes, you can still claim tax credits after leaving your job. It is important to inform HM Revenue & Customs (HMRC) about any changes in your income. They can adjust your tax credits accordingly based on your new circumstances.
What if I am going abroad and have a P45?
If you are going abroad, you should keep your P45 safe. If you need to claim a tax refund while abroad, you can ask for form P85 from HMRC. This form is necessary for tax purposes when leaving the UK.
How does a P45 affect my Student Loan deductions?
Your P45 will indicate whether Student Loan deductions are to continue. If you have a Student Loan, ensure that your new employer is aware of this to avoid any issues with your repayments.
What happens if I die while employed?
If an employee dies, the employer must indicate this on the P45 by entering 'D' in the appropriate box. All parts of the form should then be sent to HMRC immediately to ensure proper handling of tax and other matters.
How do I file my P45 with HMRC?
Employers must file the P45 online at the HMRC website. It's crucial to ensure that all details are accurate and submitted promptly to avoid any issues with tax records.