What is a P45? Everything You Need to Know
Reviewed by Ed WilkinsonLast updated: February 16, 2026 3:57 pm
Image credit: Vojtech Okenka @Pexels
In this article:
Introduction to the P45 Form
When you leave a job in the UK, your employer should give you a P45. This document summarises your pay and the tax deducted so far in the current tax year. You’ll need it to help ensure you’re taxed correctly in your next job or when you start taking a pension. Knowing what’s on it, when it should arrive, and what to do if something’s wrong helps avoid problems.
Enhanced Role of the P45 in Employee Financial Planning
Keeping your P45 is useful for personal record-keeping, budgeting and, if applicable, completing a Self Assessment tax return. As tax rules can change, keeping your latest P45 safe helps your next employer or pension provider apply the correct tax code.
Statistical Insights into P45 Issuance
P45s are issued frequently as people change jobs. Their main purpose is to carry your year-to-date pay and tax information to your next payer, so your cumulative tax position is maintained, and the risk of over or underpaying tax is reduced.
Steps to Follow When a P45 is Not Issued
- Contact your former employer: Ask for your P45 as soon as your final pay has been processed. Employers are expected to provide it without unreasonable delay.
- Consult HMRC: If you cannot obtain a P45, HM Revenue and Customs (HMRC) cannot issue a duplicate, but they can update your tax code using information you provide and arrange any refund due.
Understanding the P45 and its implications is particularly helpful when changing jobs or starting a pension. Staying proactive about this document helps you move between roles with fewer tax hiccups.
What Exactly Is a P45?
A P45 is an official PAYE document an employer gives an employee when they leave. It shows your total pay and the tax deducted so far in the tax year, along with your tax code and National Insurance number. It helps the next employer or pension provider to tax you correctly.
Key Information Included on the P45
The P45 form provides the following key details:
- Your full name and National Insurance number for identification.
- Your total gross pay in the current tax year to date, helping the new payer determine the correct tax code basis.
- Total tax deducted in the tax year to date, which is used to calculate whether further tax is due or whether you are due a refund.
Importance of Timely Issuance and Accuracy
Employers should issue a P45 promptly after your final payday. Delays or errors can lead to incorrect tax being deducted by your next employer. Accuracy matters because thresholds and codes can change over time, and your P45 drives how tax is calculated when you start your next job or take pension income.
Statistical Overview and Recent Changes
Under Real Time Information (RTI), employers submit leaver details to HMRC electronically and provide the P45 to the employee (often digitally). Employees should check the figures on their P45 against their final payslip and contact the former employer immediately if anything is wrong.
For many people, the P45 is the bridge to seamless, accurate taxation when moving from one job to another or when accessing pension income. Getting it right benefits both the employee and the new employer’s payroll process.
Issuing the P45
Employers are responsible for issuing a P45 when an employee leaves. This is usually produced by payroll software as part of the leaver process, with the leaver information sent to HMRC electronically under RTI. HMRC also provides Basic PAYE Tools for small employers to run PAYE and submit RTI.
Enhanced Automation in P45 Generation
Most UK employers now use digital payroll systems, so P45s are commonly provided electronically. This improves speed and reduces transcription errors, helping employees receive accurate documents quickly.
Detailed Breakdown of the P45 Components
The P45 historically has four parts, each with a specific purpose:
- Part 1: Submitted to HMRC by the employer electronically under RTI to update HMRC’s records.
- Part 1A: Kept by the employee for personal records.
- Parts 2 and 3: Given to your new employer or, where relevant, to a pension provider so they can apply the correct tax code. If you claim certain state benefits, you may be asked to provide pay and tax details.
Compliance and Timeliness in Issuing the P45
Employers should provide a P45 without unreasonable delay after your final payment. Not doing so can cause tax coding issues for the employee. HMRC can take compliance action where PAYE records are not properly reported, and employees can still have their tax code corrected by HMRC if a P45 is not available.
Understanding what each part is for and how the process works helps employees secure correct taxation and helps employers remain compliant with PAYE requirements.
When and How Do You Receive a P45?
You are entitled to receive a P45 when you leave a job. It should be provided on or shortly after your final payday. If it does not arrive, ask your former employer first. Although P45s used to be paper-only, many employers now issue them digitally.
Timeline for Receiving a P45
There is no fixed statutory deadline, but best practice is to issue the P45 as soon as reasonably possible after your final payment is processed, typically within a few working days. If delays persist, you can contact HMRC for help with your tax code so you are not overtaxed in your next job.
Formats of the P45
Digital P45s are increasingly common and convenient. If you receive a digital copy, download and store it securely. If you prefer a paper copy, you can request one from your employer.
Importance of Prompt and Accurate Receipt
Receiving a correct P45 promptly helps your new employer set your tax code properly. Errors can lead to too much or too little tax being deducted.
- If discrepancies are found, contact your former employer’s HR or payroll department promptly to correct and reissue the document.
- If a correction is delayed, contact HMRC so they can update your tax code and advise on next steps.
Keep a copy of your P45 (digital or paper) for your records. It’s a key document for a smooth transition between jobs.
Addressing Issues with a P45
Common issues include not receiving a P45, incorrect information on the form, or losing the document.
Not Receiving a P45
If your employer has not provided a P45, ask them to issue it. Employers are expected to provide one when employment ends. If they do not, contact HMRC; while HMRC cannot issue a duplicate P45, they can correct your tax code and ensure you are not disadvantaged.
Errors on a P45
Report any errors to your former employer so they can correct their payroll records and reissue the P45 where needed. If your tax code is wrong, contact HMRC so your new employer receives the correct code. Any over- or under-deduction of tax is usually corrected through payroll or at the end of the tax year.
Loss of a P45
A P45 cannot be reissued if lost. Tell your new employer and complete a ‘new starter checklist’ so they can allocate the correct tax code. Keep electronic copies where possible to prevent problems.
Preventive Measures and Best Practices
To mitigate issues with P45 forms, employees are encouraged to:
- Request a digital copy for safekeeping and easy access.
- Check the figures against your final payslip as soon as you receive it.
- Keep a record of communications with your former employer in case HMRC later needs evidence.
These steps protect your position and support smoother job transitions.
Use of a P45 in Different Scenarios
The P45 is useful beyond moving to a new employer. If you start taking pension income, giving parts 2 and 3 of your P45 to your pension provider helps them use the correct tax code; otherwise, payments may be taxed on an emergency basis until HMRC issues the right code.
If you retire early and take lump sums or drawdown, your recent P45 information helps providers apply tax correctly. Consider speaking to a professional if you are unsure how your withdrawals will be taxed.
If you are leaving the UK, your P45 is helpful when completing form P85 to tell HMRC you are moving abroad and to claim any refund due.
Keep your P45 with your tax records. If you do not file a Self Assessment return, keep records for at least 22 months after the end of the tax year. If you do file Self Assessment, keep records for at least five years after the submission deadline. Many people choose to keep P45s longer for reference.
Understanding these uses shows the P45 is more than a leaver’s form — it is a key part of keeping your tax affairs accurate at different life stages.
Understanding Emergency Tax Codes
If your new employer does not have your P45 or enough information to use the correct code, you may be put on an emergency basis. This often appears as a ‘week 1’ or ‘month 1’ marker (W1/M1) after a code such as 1257L, meaning tax is calculated non-cumulatively. In some cases, a temporary code such as 0T or BR may be used.
Identifying Emergency Tax Codes
Emergency treatment can increase the tax deducted in each pay period because previous earnings and tax are not taken into account cumulatively. Common signs include a W1/M1 marker on your payslip or a code like 0T or BR being applied unexpectedly.
Common Indicators of Emergency Tax Codes:
- Higher-than-expected tax deductions from your wages.
- The appearance of ‘W1/M1’ after your tax code on your payslip.
- Previous pay and tax are not being reflected in your calculations.
How to Resolve Issues with Emergency Tax Codes
Provide your new employer with your P45 as soon as possible. If you do not have it, complete a ‘new starter checklist’ so they can apply the most suitable code. HMRC will then update your records and issue the correct code where needed; any overpaid tax is usually refunded through your payroll or after the end of the tax year.
Steps to Correct an Emergency Tax Code:
- Contact HMRC: Explain your situation and provide details of your previous pay and tax if asked.
- Monitor your payslips: Check that the updated code appears and that deductions look reasonable.
- Seek professional advice: If problems persist, consider speaking to a tax professional.
Dealing with emergency codes promptly helps you avoid unnecessary overpayments. HMRC updates are typically reflected within the next few payroll runs once your information has been processed.
Keep a record of all communications with HMRC and your employer about tax code issues; this can speed up resolution if queries arise.
A Financial Adviser Can Help You Understand Wider Impact
Sorting out P45 queries and ensuring you’re on the right tax code can be confusing. An adviser can help you understand your options when moving jobs or taking pension income, and how this interacts with your wider financial plan. For specific tax-code or refund issues, HMRC or a qualified tax professional/accountant may be more appropriate.
FinancialAdvisers.co.uk can connect you with an FCA-authorised and regulated financial adviser in your area. The right expert can help you navigate employment transitions and related tax matters confidently.
