What Is a P45? A Plain-Language Guide to the UK Leaving Tax Form

If you leave a UK job where you are paid through PAYE, your former employer should give you a P45 showing your leaving date and the pay and tax recorded in that employment during the tax year. You can give it to a new employer so they can use the information on it when setting up your PAYE payroll. The form relates only to the job you left, so it is not a summary of all your income or a calculation of your final tax bill. If you do not have a P45 when you start another job, your new employer can usually ask you to complete a starter checklist and use the information available to operate payroll. Check the P45 against your records when it arrives, and keep it with your final payslip because the form does not include every payroll deduction.

What Does a P45 Do?

A P45 records key payroll information when an employment ends. It helps pass details about that employment to you and, if you start another job, to your new employer. It is mainly relevant to employees paid under PAYE, the system through which employers deduct income tax from pay.

GOV.UK’s guide to PAYE forms explains how a P45 fits with documents such as a P60 and a P11D. For readers familiar with U.S. tax paperwork, a P45 is an end-of-employment record, but it is not the equivalent of a U.S. W-2. The forms belong to different tax systems and serve different purposes.

When Do You Receive a P45?

You receive a P45 when a particular employment ends. This may be because you resign, reach the end of a fixed-term role, retire, are dismissed, or move to another employer. If you have more than one job, leaving one does not mean you have left the others. The P45 relates only to the employment that ended.

The form records pay and tax from that employer for the tax year up to your leaving date. It does not summarize income from every employer or other source. Your final payslip may also contain information that is not on the P45, including deductions made in your last pay period.

What Information Does a P45 Include?

A P45 generally includes identifying details for you and your former employer, your tax code, and figures for pay and tax recorded in that employment. These details can help a new employer set up your PAYE record. The form is not a complete record of every deduction from your pay.

In particular, a P45 does not show National Insurance deductions or pension contributions. Keep your final payslip as well because it may show those amounts. If you are comparing UK paperwork with U.S. documents, a guide to what happens to your 401(k) when you leave a job covers a separate U.S. employment benefit and is not a substitute for information on a P45.

Why Does a New Employer Ask for It?

A new employer can use the P45 to help set up your PAYE payroll, including the tax code information shown on the form. Giving it to them promptly can help them process your pay using the information already recorded. The P45 is an input to payroll rather than a personalized calculation of how much tax you ultimately owe.

If you do not have a P45 when you start, tell your new employer. They can usually ask you to complete a starter checklist to gather the information needed to run payroll. Without a P45, your employer may initially use a temporary or emergency tax code while your details are confirmed. This can affect the tax taken from your pay in the short term, but it does not by itself mean that an error has occurred.

What Should You Do with Your P45?

Check the form when you receive it. Compare your personal details, leaving date, and pay information with your records. If something appears wrong, contact the employer that issued it. Your final payslip and relevant payroll correspondence can help you explain what needs checking.

If You Are Starting a New Job

Give the P45 to your new employer if requested. Keep a copy for your own records, whether you receive it electronically or on paper. Your new employer can use the information to help set up your payroll.

If You Are Not Starting Another Job Straight Away

Keep the P45 with your tax and employment records. It may be useful if you need to check your pay history or answer an administrative question after leaving. Store it securely with your final payslip and any other relevant paperwork.

What Is the Difference Between a P45 and a P60?

A P45 is issued when you leave an employer and records information about that employment up to the time you leave. A P60 is associated with the end of the tax year. GOV.UK’s overview of PAYE forms explains these documents alongside other forms used in the system.

A P45 and a P60 serve different purposes, so one does not automatically replace the other. The P45 helps record a change of employment during the tax year. The P60 relates to tax-year-end information.

What Should You Check Before Leaving a UK Job?

• Save your recent payslips. Your final payslip may show National Insurance or pension deductions that are not listed on the P45.
• Confirm your contact details. Make sure your former employer can reach you if a payroll question comes up after you leave.
• Ask how the P45 will be provided. If you do not know when or how to expect it, check with your employer.
• Review the form. Compare the leaving date and pay information with your own records.
• Store your documents securely. Keep digital copies in a protected location and retain any original paperwork.

Keeping the P45 with your final payslip gives you a more complete record of your employment and pay at the point you leave. If you start another PAYE job, provide the P45 to your new employer when requested.

*This article is for general informational purposes only and is not legal advice.