What is P45 and how do I change my tax code?

Article author
Mika
  • Updated

When employees leave their jobs, P45 is key for confirming their earnings and deductions. In this article, you can explore P45's structure, tax code assignment, emergency tax codes and more common questions.

Table of contents

P45 structure and parts

The P45 contains information, including:

  • Tax paid on salary during the tax year (from 6 April to 5 April).
  • Total deductions made.
  • Employee's tax code at the time of job departure.

The P45 template comprises four parts: Part 1, Part 1A, Part 2, and Part 3.

How to use your P45

Previous employers must:

  • Submit Part 1 to HMRC.
  • Hand over the remaining parts to the employee.

Employees must:

  • Present Part 2 and Part 3 to the new employer (or Jobcentre Plus if unemployed).
  • Retain Part 1A for your personal records.

Frequently asked questions

When will I receive my P45?

After offboarding is complete, the P45 will be issued and uploaded to the employee's Documents tab between the 1st and the 10th of the following month. Please reach back if you don’t receive your P45 by the 11th. 

The tax code displayed on P45 is determined by HMRC at the time of leaving. Remote does not alter tax codes nor can we change or reissue P45 due to GDPR. If an employee wishes to dispute their tax code, they should contact HMRC directly by phone (0300 200 3300) or online. For full details, please visit the tax codes page on the UK government website.

How are tax codes issued?

Employees need to give their P45 to their new employer for the correct tax code to be used. This ensures that the correct tax code is applied when the employee starts their new job. If a P45 is not available during new hire onboarding, an emergency tax code will be applied to the employee's first month. HMRC will then assess the employee's earnings record for the current tax year and provide an updated tax code in the following month.

Please note that the tax code is assigned by HMRC, and no changes to the tax code can be made by Remote. HMRC has all the necessary information on file regarding the employee's income and tax payment history in order to issue the tax code to the new employer correctly.

Where can I find my tax code?

The tax code applied to an employee can be found on the top right corner of the payslip. You can find more information about tax codes here.

My tax code is wrong. Can you change it for me?

Please note that this tax code is issued by HMRC. Remote doesn’t receive tax code allocation details from HMRC. For concerns or corrections, contact HMRC directly.

Why was I taxed with an emergency tax code?

This situation may arise if we had to process the payment after your P45 was issued, then you will assigned an emergency tax code. For concerns or corrections, contact HMRC directly. You can find more information about tax codes here.

Note: If you are aware that your P45 won't be issued on time and want to avoid being put under an emergency tax code, you can fill in this form and share it with Remote in advance.

Why was no tax deducted from my payslip?

If your earnings for a given month were below the HMRC tax-free pay threshold, as indicated by your tax code, then no tax will be deducted.

 

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