The P46 and P45 forms both relate to your tax code and are used to determine that you are paying the right amount in tax, however there are some differences.
What Is The P45?
If you leave your job, you will be given the P45 form. This will contain the details of all pay that you received and all the tax that you paid during the tax year from the 6th April until the day you left your employment with the company. The P45 form also shows your tax code. You will then give this form to any new employer, and they will use the information given on the P45 form to ensure you are paying the right amount in tax.
What If I Don’t Have A P45?
There are several reasons why you may have no P45 form. Sometimes, a previous employer does not give one, and sometimes it can be mislaid. You may be beginning your first ever job after being unemployed for some time or leaving full time education. If you are a student that will only be working during your holidays or if you are taking on a second job, you will also not have a P45. In these cases, you will need to complete the P46 form.
What Is The P46 Form?
The P46 form helps employers to work out which is the right tax code to apply to your pay, and ensures that you are paying the right amount in tax. When completing a P46, you need to choose the correct one of the 3 statements which appear on the form to suit your own circumstances and this will determine the correct tax code. The P46 form should be filled in and sent to the HMRC before your first payday.
If you need help with your Payroll compliance and PAYE returns please contact The Accountancy Solutions on 01216297768 or 02070784001 for further advice.