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P 45 It Template

The P45 It form is an important document used in the UK to record details when an employee leaves their job. It serves as a formal record for both the employee and the employer, detailing earnings, tax deductions, and other essential information. Understanding how to complete and use this form can help ensure a smooth transition for employees moving to new roles or claiming benefits.

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The P45 form plays a crucial role in the employment landscape, serving as a key document for both employers and employees during the transition of leaving one job for another. When an employee departs from their position, this form, which consists of multiple parts, captures essential information such as the employee’s total pay and tax deductions to date, their National Insurance number, and the tax code applicable at the time of leaving. Employers are responsible for completing the P45 accurately and promptly, ensuring that all details are clear and correct, as this information is vital for the employee’s future tax obligations. The form is divided into sections that cater to different parties: Part 1 is submitted to HM Revenue & Customs (HMRC), while Parts 1A, 2, and 3 are provided to the employee and their new employer. This structured approach not only facilitates a smooth transition for the employee but also helps maintain accurate tax records. Additionally, the P45 form includes important instructions for both employees and employers regarding what to do next, ensuring that all parties understand their responsibilities. Understanding the P45 form is essential for navigating the complexities of employment changes and tax regulations, making it a vital resource in the world of work.

Key takeaways

The P45 form is essential when an employee leaves a job. It provides important information about their pay and tax details.
It consists of three parts: Part 1 is for HM Revenue & Customs (HMRC), Part 1A is for the employee, and Parts 2 and 3 are for the new employer.
Employers must complete the form accurately and send Part 1 to HMRC immediately after the employee leaves.
Employees should keep Part 1A safe, as it may be needed for tax returns or other financial matters.
When filling out the form, use capital letters for clarity and ensure all information is correct.
For students with a Student Loan, indicate if deductions are due by entering 'Y' in the appropriate box.
If the employee is leaving on a week 1 or month 1 basis, mark the box accordingly to avoid confusion.
In cases of an employee's death, mark 'D' on the form and send all parts to HMRC immediately.
New employers should return Part 1A to the employee and complete Parts 2 and 3 as needed.
Employees who do not want their new employer to see their tax details can send the form directly to HMRC with a request for confidentiality.

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Documents used along the form

The P45 form is crucial for employees transitioning between jobs in the UK. However, several other documents complement the P45, ensuring a smooth process for both employees and employers. Below is a list of these important forms.

P60: This document summarizes an employee's total pay and deductions for the tax year. Employers must provide a P60 to employees by May 31 each year, allowing them to confirm their tax status and use the information for tax returns.
P50: Used to claim a tax refund when an employee stops working. This form is essential for those who have overpaid tax and need to recover funds from HM Revenue & Customs (HMRC).
P85: This form is necessary for individuals leaving the UK to work abroad. It informs HMRC of the change in residency status and helps ensure that the correct tax treatment is applied.
Homeschool Letter of Intent Form: This form is essential for parents intending to homeschool their children in California, and it can be found at californiadocsonline.com/homeschool-letter-of-intent-form/.
P11D: Employers use this document to report expenses and benefits provided to employees. It helps in calculating the taxable benefits that may affect an employee's tax return.

Understanding these forms is vital for both employees and employers. Each document serves a specific purpose and plays a significant role in managing tax obligations and employment records.

Dos and Don'ts

When filling out the P45 IT form, it's essential to ensure accuracy and clarity. Here are five important things to do and avoid during the process:

Do use capital letters when completing the form. This helps ensure that all information is legible and correctly understood.
Do enter the correct National Insurance number. This is crucial for tax purposes and to ensure that the employee's records are accurately maintained.
Do send Part 1 to HM Revenue & Customs immediately. Timely submission helps avoid any potential issues with tax records.
Do check for any Student Loan deductions. If applicable, make sure to indicate this clearly on the form.
Do keep a copy of the completed form for your records. This can be helpful for future reference or in case of any discrepancies.

Don't leave any sections blank unless specifically instructed. Each section must be filled out to avoid confusion.
Don't use incorrect titles when entering the employee's name. Ensure that titles such as MR, MRS, MISS, or MS are correctly applied.
Don't forget to certify the details entered in the form. This is a necessary step to confirm that the information is accurate.
Don't alter any parts of the form after it has been filled out. Changes can lead to complications or misunderstandings.
Don't delay in handing over Parts 1A, 2, and 3 to the employee. This ensures they have all necessary documentation for their records.

Common mistakes

Filling out the P45 form can be a straightforward process, but mistakes can lead to delays and confusion. Here are eight common errors people make when completing this important document.

One frequent mistake is failing to use capital letters throughout the form. The instructions clearly state that all entries should be in capital letters. Neglecting this requirement can result in misinterpretation of the information, causing potential issues with tax records.

Another common error is not entering the correct PAYE reference or office number. This information is crucial for HM Revenue & Customs (HMRC) to process the form accurately. If these details are incorrect, it may lead to complications in tax calculations and reporting.

Many individuals also overlook the importance of completing the National Insurance number section. Leaving this blank can hinder the identification process and affect the employee's tax status. Ensuring that this number is accurate and present is essential for smooth processing.

When it comes to the leaving date, some people mistakenly enter the wrong date format. The form requires the date in DD MM YYYY format. An incorrect format can lead to confusion and may delay the processing of the form.

Another mistake is failing to check the box for Week 1 or Month 1 if applicable. If this applies to the employee, entering an 'X' in the box is necessary. Failing to do so could result in incorrect tax deductions, leading to potential overpayment or underpayment of taxes.

People often forget to certify the details entered on the form. This certification is a declaration that the information provided is correct. Without this signature, the form may be deemed incomplete, causing further delays.

In addition, individuals sometimes neglect to provide a complete address. An incomplete address can lead to difficulties in communication with HMRC, which may result in unresolved tax issues. It’s vital to ensure that all contact information is accurate and comprehensive.

Finally, many people do not retain a copy of the completed P45 form. Keeping a copy is essential for personal records and can be helpful for future tax returns or employment verification. It is advisable to store this document safely for reference.

File Characteristics

Fact Name	Fact Description
Purpose	The P45 form is used to provide details about an employee's tax and pay when they leave a job.
Parts	The P45 consists of three parts: Part 1 for HM Revenue & Customs, Part 1A for the employee, and Parts 2 and 3 for the new employer.
Filing Requirement	Employers must send Part 1 of the P45 to HM Revenue & Customs immediately after an employee leaves.
Employee Information	Employees must provide their National Insurance number, leaving date, and total pay and tax details on the form.
Tax Codes	The P45 includes the employee's tax code at the time of leaving, which is essential for the new employer.
Student Loan Deductions	The form indicates if student loan deductions are applicable and whether they should continue with the new employer.
Emergency Tax Codes	If Parts 2 and 3 are not provided to the new employer, they may apply an emergency tax code, leading to potential over-taxation.
Employee's Responsibility	Employees should keep Part 1A safe, as it may be needed for tax returns or other purposes.
Deadline for Submission	Employers must complete and submit the P45 form promptly to avoid penalties.
Legal Framework	The P45 form is governed by UK tax laws as outlined by HM Revenue & Customs.

Form Sample

P45 Part 1

Details of employee leaving work

Copy for HM Revenue & Customs

File your employee's P45 online at www.hmrc.gov.uk

Use capital letters when completing this form

Employer PAYE reference

Student Loan deductions

Office number

Reference number

Enter 'Y' if Student Loan deduction is due to be made

Tax Code at leaving date

Employee's National Insurance number

If week 1 or month 1 applies, enter 'X' in the box below.

Title – enter MR, MRS, MISS, MS

or other title

Week 1/Month 1

Last entries on P11 Deductions Working Sheet.

Surname or family name

Complete only if Tax Code is cumulative. Make no entry

if week 1 or month 1 applies, go straight to box 8.

Week number

Month number

First or given name(s)

Total pay to date

•

Leaving date DD MM YYYY

Total tax to date

•

Employee’s private address

This employment pay and tax. Leave blank if the Tax Code

is cumulative and the amounts are the same as box 7.

Total pay in this employment

•

Total tax in this employment

Postcode

•

Works number/Payroll number and Department or branch

(if any)

I certify that the details entered in items 1 to 11 on

this form are correct.

Employer name and address

Gender. Enter ‘X’ in the appropriate box

Male

Female

Date of birth DD MM YYYY

Postcode

Date DD MM YYYY

When an employee dies. If the employee has died

enter 'D' in the box and send all four parts of this

form to your HMRC office immediately.

Instructions for the employer

•Complete this form following the 'What to do when an employee leaves' instructions in the Employer Helpbook E13 Day-to-day payroll. Make sure the details are clear on all four parts of this form and that your name and address is shown on Parts 1 and 1A.

•Send Part 1 to your HM Revenue & Customs office immediately.

•Hand Parts 1A, 2 and 3 to your employee when they leave.

P45(Manual) Part 1

HMRC 04/08

P45 Part 1A

Details of employee leaving work

Copy for employee

Employer PAYE reference

Student Loan deductions

Office number

Reference number

Student Loan deductions to continue

Tax Code at leaving date

Employee's National Insurance number

If week 1 or month 1 applies, enter 'X' in the box below.

Title – enter MR, MRS, MISS, MS

or other title

Week 1/Month 1

Last entries on P11 Deductions Working Sheet.

Surname or family name

Complete only if Tax Code is cumulative. If there is an ‘X’

at box 6 there will be no entries here.

Week number

Month number

First or given name(s)

Total pay to date

•

Leaving date DD MM YYYY

Total tax to date

•

Employee’s private address

This employment pay and tax. If no entry here, the amounts

are those shown at box 7.

Total pay in this employment

•

Total tax in this employment

Postcode

•

Works number/Payroll number and Department or branch

(if any)

I certify that the details entered in items 1 to 11 on

this form are correct.

Employer name and address

Gender. Enter ‘X’ in the appropriate box

Male

Female

Date of birth DD MM YYYY

Postcode

Date DD MM YYYY

To the employee

The P45 is in three parts. Please keep this part (Part 1A) safe. Copies are not available. You might need the information in Part 1A to fill in a Tax Return if you are sent one.

Please read the notes in Part 2 that accompany Part 1A. The notes give some important information about what you should do next and what you should do with Parts 2 and 3 of this form.

Tax credits

Tax credits are flexible. They adapt to changes in your life, such as leaving a job. If you need to let us know about a change in your income, phone 0845 300 3900.

To the new employer

If your new employee gives you this Part 1A, please return it to them. Deal with Parts 2 and 3 as normal.

P45(Manual) Part 1A

HMRC 04/08

P45 Part 2 Details of employee leaving work

Copy for new employer

Employer PAYE reference

Office number Reference number

Employee's National Insurance number

Title - enter MR, MRS, MISS, MS or other title

Surname or family name

First or given name(s)

Leaving date DD MM YYYY

5Student Loan deductions

Student Loan deductions to continue

6Tax Code at leaving date

If week 1 or month 1 applies, enter 'X' in the box below. Week 1/Month 1

7Last entries on P11 Deductions Working Sheet. Complete only if Tax Code is cumulative. If there is an ‘X’ at box 6, there will be no entries here.

Week number			Month number
Total pay to date

£ •

Total tax to date

£ •

To the employee

This form is important to you. Take good care of it and keep it safe. Copies are not available. Please keep

Parts 2 and 3 of the form together and do not alter them in any way.

Going to a new job

Claiming Jobseeker's Allowance or

Employment and Support Allowance (ESA)

Take this form to your Jobcentre Plus office. They will pay you any tax refund you may be entitled to when your claim ends, or at 5 April if this is earlier.

Give Parts 2 and 3 of this form to your new employer, or you will have tax deducted using the emergency code and may pay too much tax. If you do not want your new employer to know the details on this form, send it to your HM Revenue & Customs (HMRC) office immediately with a letter saying so and giving the name and address of your new employer. HMRC can make special arrangements, but you may pay too much tax for a while as a result of this.

Going abroad

Not working and not claiming Jobseeker's Allowance or Employment and Support Allowance (ESA)

If you have paid tax and wish to claim a refund ask for form P50 Claiming Tax back when you have stopped working from any HMRC office or Enquiry Centre.

Help

If you need further help you can contact any HMRC office or Enquiry Centre. You can find us in The Phone Book under HM Revenue & Customs or go to www.hmrc.gov.uk

If you are going abroad or returning to a country

outside the UK ask for form P85 Leaving the United Kingdom from any HMRC office or Enquiry Centre.

Becoming self-employed

You must register with HMRC within three months of becoming self-employed or you could incur a penalty. To register as newly self-employed see The Phone Book under HM Revenue & Customs or go to www.hmrc.gov.uk

to get a copy of the booklet SE1 Are you thinking of working for yourself?

To the new employer

Check this form and complete boxes 8 to 18 in Part 3 and prepare a form P11 Deductions Working Sheet. Follow the instructions in the Employer Helpbook E13 Day-to-day payroll, for how to prepare a P11 Deductions Working Sheet. Send Part 3 of this form to your HMRC office immediately. Keep Part 2.

P45(Manual) Part 2

HMRC 04/08

P45 Part 3

New employee details

For completion by new employer

File your employee's P45 online at www.hmrc.gov.uk

Use capital letters when completing this form

Employer PAYE reference

Student Loan deductions

Office number Reference number

Student Loan deductions to continue

Tax Code at leaving date

Employee's National Insurance number

If week 1 or month 1 applies, enter 'X' in the box below.

Title – enter MR, MRS, MISS, MS or other title

Week 1/Month 1

Last entries on P11 Deductions Working Sheet.

Surname or family name

Complete only if Tax Code is cumulative. If there is an ‘X’

at box 6, there will be no entries here.

Week number

Month number

First or given name(s)

Total pay to date

•

Leaving date DD MM YYYY

Total tax to date

•

To the new employer Complete boxes 8 to 18 and send P45 Part 3 only to your HMRC office immediately.

New employer PAYE reference

Office number Reference number

Employee's private address

9Date new employment started DD MM YYYY

10Works number/Payroll number and Department or branch (if any)

11Enter 'P' here if employee will not be paid by you between the date employment began and the next 5 April.

12Enter Tax Code in use if different to the Tax Code at box 6

If week 1 or month 1 applies, enter 'X' in the box below. Week 1/Month 1

13If the tax figure you are entering on P11 Deductions Working Sheet differs from box 7 (see the E13 Employer Helpbook Day-to-day payroll) please enter the

figure here.

£ •