What is a P45 and what do you do with it when you leave a job?

When you leave a job — whether you resign, are made redundant, or retire — your employer must give you a document called a P45. Most people tuck it into a drawer and forget about it. That's a mistake. Your P45 can affect how much tax you pay for the rest of the tax year, and getting it to the right place quickly can prevent months of overtaxing.

What is a P45?

A P45 is an HMRC document that records your earnings and tax deductions from the start of the tax year (6 April) to the date you left your job. It has four parts:

• Part 1: Your employer sends this directly to HMRC
• Part 1A: You keep this for your records
• Parts 2 and 3: You give these to your new employer when you start your next job

In practice, most P45s are now issued electronically. You may receive a PDF or an email link rather than a physical paper form. The four-part structure still applies — your new employer just submits their copy digitally to HMRC.

What does a P45 show?

A P45 contains the following information:

• Your full name, address, and National Insurance number
• Your employer's name and PAYE reference number
• The date you left
• Your tax code on the date you left
• Your total taxable pay in the current tax year (from 6 April to leaving date)
• The total income tax deducted in the current tax year
• Whether your tax was calculated on a "Week 1/Month 1" basis (this is important — it means the figures are less reliable for cumulative calculations)

What to do with your P45 when you receive it

1. Give Parts 2 and 3 to your new employer immediately

As soon as you start a new job, hand your P45 to your new employer's payroll or HR team. Don't wait. If you give it to them before your first payday, they can use it to apply the correct tax code from day one — and you'll avoid being put on an emergency tax code.

Your new employer will use the year-to-date figures on the P45 to calculate how much of your personal allowance has already been used and what tax you should pay going forward. Without it, they have to use an emergency code and guess.

2. Keep Part 1A safely

Part 1A is your copy. Keep it with your other important financial documents. You may need it if:

• You need to complete a Self Assessment tax return
• You're claiming a tax refund at year end
• There's a dispute about your tax or NI record
• You're applying for benefits (some means-tested benefits check employment history)

What if you don't get a P45?

Your employer is legally required to issue a P45 when you leave. If they fail to do so:

1. Ask your employer or their payroll provider directly — it may have been sent to an old email address
2. If they refuse or are unresponsive, complete an HMRC New Starter Checklist with your new employer instead (this partially substitutes for the P45)
3. You can also contact HMRC on 0300 200 3300 to report that a P45 wasn't issued

An employer who deliberately withholds a P45 is breaking HMRC rules and can be fined.

What if you lose your P45?

HMRC does not issue replacement P45s. Your previous employer can sometimes provide a duplicate — ask them directly. If that's not possible, use the New Starter Checklist with your new employer and contact HMRC to ensure your tax record is correct.

P45 for a redundancy payment: what to watch for

If you've been made redundant, your P45 should reflect your final salary and any notice pay. Redundancy payments themselves up to £30,000 are tax-free and should not appear as taxable pay on your P45. If you see a large taxable figure that includes your redundancy payment, query this with your employer — it may have been processed incorrectly.

What about claiming a tax refund with a P45?

If you've left a job and don't immediately start a new one, you may be due a tax refund. You can:

• Claim in-year using form P50 (if you've been out of work for at least 4 weeks and don't expect to return to work before the end of the tax year)
• Wait until after 5 April — HMRC will send a P800 if they calculate a refund is due, or you can claim via your Personal Tax Account

Frequently asked questions

Can I have more than one P45 in a tax year?

Yes — you get a P45 every time you leave a job. If you've had two jobs in a tax year, you'll have two P45s. Give your new employer the most recent one. Keep the earlier ones for your records.

What's the difference between a P45 and a P60?

A P45 is issued when you leave a job mid-year and covers the period from 6 April to your leaving date. A P60 is issued at the end of each tax year by your current employer and shows your full-year earnings and deductions. You only receive a P60 if you were employed on 5 April.

Does the P45 include National Insurance?

No. A P45 only shows income tax deducted. Your NI record is maintained separately by HMRC through your National Insurance number. You can check your NI record at gov.uk/check-national-insurance-record.

I'm going self-employed — do I still need to give my P45 somewhere?

If you're going fully self-employed with no PAYE employment, you don't need to give your P45 to anyone. Keep Part 1A for your records. When you complete your first Self Assessment return, you'll report your employment income from the tax year — the P45 figures help you fill this in accurately.

Check your current payslip deductions with our free payslip checker, or read our guide on what a P60 means.