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P60 explained โ what it is, what to check, and how to use it
7 min read
A P45 is the document your employer gives you when you leave a job. It's one of the most important pieces of paper in UK employment โ and losing it or ignoring it can cost you hundreds of pounds in emergency tax.
What does a P45 contain?
Your P45 has four parts and shows: your tax code at the time you left, your total pay in the current tax year up to your leaving date, and the total tax deducted up to your leaving date. It also shows your National Insurance number and your employer's PAYE reference.
Why does your new employer need it?
Your new employer uses your P45 to set up your tax correctly from day one. Without it, they have to put you on an emergency tax code (usually 1257L W1/M1 or BR), which means you may pay too much tax until HMRC updates your record.
What if you've lost your P45?
Your previous employer cannot issue a replacement P45 โ HMRC rules only allow one to be issued. Instead, ask your new employer for a Starter Checklist (previously called a P46). This lets you declare your situation (first job, only job, second job) so your new employer can apply the right tax code.
What if you're between jobs?
If you're claiming Universal Credit or Jobseeker's Allowance between jobs, the DWP will issue you a P45 when your claim ends. Give this to your new employer.
Check your first payslip
After starting a new job, always check your first payslip carefully. If your tax code shows W1 or M1, or if it's BR, you may be on emergency tax. Use our tax code checker to understand what your code means and whether you need to take action.