Your employee leaves – Frequently Asked Questions about completing form P45

Need more help?

If you have any other questions about starting the tax year which have not been covered you can get more help by calling the Employer Helpline on 0845 7 143 143, or you can send an email and we will reply within 2 working days.

Q. How do I send a P45 online and what do I give to the employee?

A. Before you can file online you need to register with HMRC. Choose PAYE for Employers in the Do it online section.

You can send us form P45 (Part 1) online using third party software or our free Online Return and Forms – PAYE product which is part of our PAYE for Employers service. Or you can get an agent or payroll bureau to do it online for you.

You will find all the information you need on our online filing pages.

The online form requests details of:

  • Leaving date
  • Tax code at leaving date
  • Pay and Tax details

But even if you send the above details online you will still need to give Parts 1A, 2 and 3 to the employee. You can obtain a supply of P45s from the Employer Orderline.

Q. What leaving date do I put on the P45?

A. The leaving date is the date you determine you ceased to employ the employee in accordance with general employment law.

Q. My employee has lost (not received) the P45 can I issue a duplicate?

A. You must not issue a duplicate P45 under any circumstances.

When your former employee starts their next employment their new employer will ask them to complete a form P46.

Q. Can I issue another P45 if I make further payments?

A. You must not issue a further P45 under any circumstances.

If you have to make payments after the P45 has been issued then you should give a letter to your employee confirming the payment details. A copy of this letter should also be sent to your PAYE tax office.

You should include on this letter:

  • the date of payment
  • the gross amount of payment
  • the amount of PAYE and NICs deducted

You should deduct tax using a BR tax code non – cumulatively and deduct NICs using their usual earnings period if the payment represents a final salary or wage.

If the payment is an irregular payment (e.g. accrued holiday pay or an unexpected bonus) calculate the NICs using the weekly earnings period. You can get more information from Chapter 1 of the Helpbook CWG2 (2007) Employer Further Guide to PAYE and NICs.

Q. Can I issue another P45 because I have discovered a mistake on the original?

A. You must not issue a duplicate P45 under any circumstances.

If you have not issued the P45 to the employee or the PAYE tax office (or sent it online), destroy all four parts of the incorrect one and complete a new one.

Do not score figures out or use correction fluid on the P45. All four parts of the P45 must have identical entries.

If you made an error on the P45 and have already sent it to the employee and/or PAYE tax office (or sent it online), you should send a letter to your PAYE tax office confirming what the errors were and also send a copy of the letter to the employee.

Q. My employee has moved away with no forwarding address, what should I do with their P45?

A. Detach Part 1 and send it to your PAYE tax office without delay, or send P45 (Part 1) online.
If you do not have your employee’s forwarding address, retain Parts 1A, 2 and 3 in case your employee contacts you for them.

Q. I am completing a P45 for an employee leaving. What should I put in sections 7 and 8?

A. Completion of sections 7 and 8 depends on the tax code your employee was on at the date of leaving.

Section 7 should be completed if the tax code was cumulative (if the code was non-cumulative it would be signified with an ‘x’ or a ‘wk1/mth1’ marking). You should show the employee’s pay and tax details for the whole of the current tax year, including details from any previous employment if it was also in the current tax year. You can get this information from the P45 your employee gave you or from the form P6 sent to you by the PAYE tax office.

You should complete Section 8 when the tax code is either:

The information here should be the total pay and tax in your employment since 6th April. If the ‘Total tax in this employment’ is nil then enter £0.00 in the box. Do not enter any refunds made.
You will find more information about completing form P45 in Helpbook E13 Day to day Payroll – What to do when an employee leaves

Q. Is there a time limit for issuing P45s?

A. You must send Part 1 of the P45 to the PAYE tax office, or online immediately or as soon as possible after the last pay date. Parts 1A, 2 & 3 should be given to the employee as soon as possible.

If you are an employment agency you should issue the P45 on termination of the contract or if the employee has not received any relevant payments from you within a three month period, whichever is the earlier.

Q. Do I need to issue a P45 to every employee who leaves?

A. You must complete a P45 for any employee who is leaving your employment and for whom you have completed a P11 deductions working sheet in the current tax year.

You have a legal obligation to do this. The exception to this is when you have only used tax code 'NI' (used when a student is signing a P38(s) declaration).