In this section:
Tax can seem complicated when your work situation changes or you start your first job. But taking time to get the paperwork right can help you avoid paying too much or too little tax.
On this page:
If you're a student and you've done some part-time work this tax year, you may have a form P45 from your previous employer. This gives details of your earnings and the tax you've paid. A tax year runs from 6 April to the following 5 April.
If you haven't got a P45, your new employer will ask you to fill in a form P46. It's important you complete this before your first pay day so your employer knows what tax code to use. They'll send the P46 to HM Revenue and Customs (HMRC) so they can set up a record for you and review your tax code.
Your employer uses your tax code to work out how much tax to take off your wages through the PAYE (Pay As You Earn) system.
There are three main rates of Income Tax:
Nearly everyone who lives in the UK gets a tax-free Personal Allowance. This is the amount of income you can receive, spread equally over the year, without having to pay tax on it.
Starting your first job - tax and National Insurance
Get basic information about Income Tax
When you leave a job where you've paid tax through PAYE, your employer will give you a P45. Give it to your next employer so they know what tax you've paid so far this year. It'll help them make sure you won't pay too much tax in the future.
If you've lost your P45, you may be asked to fill in a P46, your new employer will not necessarily give you a P46 to fill in, but will ask you for the relevant information to allocate a tax code and work out the tax due on your first pay day. HMRC will then process your P46 or the information passed on from your employer and, where necessary, revise your tax code. It's important you provide this as soon as possible before your first pay day so your employer knows what tax code to use
A P46 contains important details that affect the tax you'll pay, like:
It's really important to make sure you provide your employer with the P46 or information straightaway if you can't get a P45. If you don't you could end up paying too much tax.
If you're a student and you work part-time, see the section 'If you're a student and working'.
Employee tax and National Insurance
Find out what your tax code means
If you start a second job without giving up your other one you won't get a P45. So you should ask your new employer for a P46 form, they may have their own forms or arrangements for getting the relevant information needed from you, but you must let them know you've already got another job. You don't have to tell them where you're working or how much you're earning.
You'll have a tax code for each employer. This tells them what tax allowances you get. But your Personal Allowance will normally only apply to your main job.
To avoid paying too much tax, you can ask HMRC to split your Personal Allowance between your jobs if for example you don't pay tax on your earnings from your first job and you're not using all of your Personal Allowance.
If you've got several sources of income that are taxed through PAYE it can get confusing. Check your payslips carefully to make sure you're paying the right tax.
Find out how to check your tax if you get more than one tax code
Make sure you get a form P45 from your employer when you leave - unless you're a student who has not had tax deducted because you completed form P38S Student Employees - see the section 'If you're a student and working'. If you start a new job you'll need to give your P45 to your new employer. They'll use it to work out your tax.
Employee tax and National Insurance
If you are starting to claim Jobseeker's Allowance after leaving your job, you'll need to give your P45 to the Benefits Office. They'll use it to pay you any tax refund you're entitled to either when your claim finishes or at the end of the tax year if you are still claiming.
Claiming a tax refund when you start work
If you're a student with a holiday job, you may not have to pay tax. You can fill in a form P38S for student employees if all the following apply to you:
You can't use form P38S for your holiday job if you've also got a part-time job during term-time. You can find out more about students and tax by following the second link below.
Go to form P38S for student employees
Go to the Student Tax Advice area of the Directgov website (Opens new window)
You must let HMRC know as soon as you become self-employed - even if you already fill in a Self Assessment tax return. If you don't do this you'll have to pay a penalty.
You'll fill in a tax return each year, giving details of your earnings and any other income so HMRC can work out how much tax you have to pay.
You can register for Self Assessment by calling our newly Self-Employed Helpline, follow the link below.
When you stop claiming jobseeker’s allowance to start work for a new employer, the Benefit Office will check the amount of tax paid against your taxable income including the amount of jobseeker’s allowance you've received. They will refund you any overpayment and issue a P45(U) which you should give to your new employer.
When you retire you must let HMRC know if you'll be getting a company pension.
Your employer will send HMRC a P46(PEN) Notification of Pension Starting form and give you a copy to keep. HMRC will use the information to give you a new tax code and make sure you pay the right amount of tax.
Look up form P46(Pen) (PDF 54K)
Read about pensions, benefits and your tax code
Your employer will give you a P45. You'll also get a P161 Pension Coding form to fill in from HMRC. This tells HMRC how your income has changed so they can make sure you pay the right tax. Follow the link below to find out why you need to fill in form P161.
If you're starting to receive a personal pension (not from your employer) you should send your P45 to your pension company.
See why you need to fill in form P161
Go to form P161 Pension Coding
Employee tax and National Insurance
Staring your first job - tax and National Insurance
Get information about PAYE forms P45, P46, P60 and P11D
Find out how to report changes which might affect your Income Tax
Check you're paying the right amount of Income Tax
Find out how to correct mistakes in your Income Tax
