What Does P45 Show in UK? 10 Apr 2023

In the UK, a P45 is a form that shows an employee's income and tax deductions for the current tax year up to the date they leave their job. It is a legal requirement for an employer to provide a P45 to an employee when they leave their job, whether through redundancy, resignation, or termination. Order P45 Online

A P45 consists of four parts, each of which serves a specific purpose:

Part 1 - This part of the P45 is sent to HM Revenue and Customs (HMRC) and provides information about the employee's tax code, total pay and deductions for the current tax year up to the date they left their job.

Part 1A - This part of the P45 is also sent to HMRC and provides information about the employee's pay and tax deductions in the current pay period, including the date they left their job.

Part 2 - This part of the P45 is given to the employee and should be kept for their records. It includes information about their employer, their National Insurance number, and their leaving date.

Part 3 - This part of the P45 is given to the employee's new employer if they start a new job immediately after leaving their previous job. It provides information about their tax code and tax deductions from their previous job.

The information provided on a P45 is used by HMRC to calculate the employee's tax liability for the current tax year and to ensure that they are paying the correct amount of tax. It is important for employees to keep their P45 safe and to give Part 3 to their new employer to ensure that their tax code and tax deductions are correct for their new job.