What Is a P45 and When Do You Need One?
- Kyle Randall
- Jan 9
- 3 min read
Understanding the P45 Form
A P45 is one of the most important PAYE documents you’ll receive when you leave a job. Despite how common it is, many people aren’t sure what it’s for or what they should do with it.
In this guide, we explain what a P45 is, when you receive one, what information it contains, and why it’s important for your tax record.
What Is a P45?
A P45 is a document given to you by your employer when you stop working for them.
It shows:
Your total pay to date
Income Tax paid so far in the tax year
Your National Insurance number
Your tax code
Your leaving date
It covers income from 6 April up to your final working day.
When Do You Receive a P45?
You should receive a P45 when you:
Leave a job
Are made redundant
Finish a temporary or contract role
Employers must issue it without delay after your employment ends.
What Is a P45 Used For?
Your P45 is used to:
Ensure you’re taxed correctly in your next job
Prevent emergency tax codes being applied
Complete a Self Assessment tax return (if required)
Claim a tax refund
If you don’t provide your P45 to a new employer, you may initially pay too much tax.
What’s the Difference Between a P45 and a P60?
These two documents are often confused.
P45 – Issued when you leave a job, showing pay and tax so far in the tax year
P60 – Issued after the tax year ends if you were employed on 5 April
If you want a full breakdown, read our guide on what a P60 is and why it’s important.
What If You Don’t Have a P45?
If you don’t have a P45:
Your new employer will ask you to complete a starter checklist
You may be put on an emergency tax code temporarily
This usually corrects itself over time, but it can affect your take-home pay in the short term.
Do Self-Employed People Get a P45?
No — P45s only apply to PAYE employment.
If you’re self-employed, tax is handled through Self Assessment instead. You can learn more about this on our Self Assessment services page.
What If the Information on My P45 Is Wrong?
If you notice an error on your P45:
Contact your former employer immediately
Ask for confirmation or correction
Keep payslips as supporting evidence
Errors can affect future tax calculations if left unresolved.
Official HMRC Guidance
You can find official guidance on P45 forms on the HMRC website:https://www.gov.uk/paye-forms-p45-p60-p11d
How VIP Accounting Ltd Can Help
At VIP Accounting Ltd, we help individuals across Benfleet, Essex and the UK with:
Reviewing PAYE documents
Checking tax paid is correct
Completing Self Assessment returns
Claiming tax refunds
Resolving HMRC issues
If you’re unsure whether your P45 is correct or how it affects your tax, speak to our team via our contact page.
FAQs
Do I need to keep my P45?
Yes — keep it until the end of the tax year, or longer if you complete a Self Assessment return.
What happens if I lose my P45?
Ask your former employer for details or use payslips instead.
Do I give my P45 to my new employer?
Yes — this helps ensure you’re taxed correctly from day one.
Can I have more than one P45 in a year?
Yes — if you leave multiple jobs in the same tax year.
Who Wrote This Article
Kyle Randall, Founder of VIP Accounting Ltd, provides clear, practical guidance to help individuals and business owners understand UK tax documents and stay compliant with HMRC.
VIP Accounting Ltd is a strategic accounting and tax advisory firm based in Benfleet, Essex, supporting individuals and businesses across the UK with PAYE, Self Assessment, tax planning, and HMRC compliance.
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