P46 - What is it?
A P46 form should be issued to you as a new employee if you cannot submit a P45.
A P45 should be issued to you by your former employer when you leave your job and is a record
of your pay and the tax that has been deducted from your pay so far in the current tax year.
- Your tax code and PAYE (Pay As You Earn) reference number
- Your National Insurance Number
- Your leaving date
- Your earnings in the current tax year
- How much tax was deducted from your earnings in the current tax year
The P45 also gives details of your employers tax office and your employers tax reference number.
There are a variety of reasons that you may not have a P45 such as:
- It is your first job (and you have not been claiming benefits)
- It is your first employment in the current Financial year
- You are an immigrant worker
- You have lost your P45
- Your P45 has not been issued by your previous employer
- This is another job in addition to your current occupation
Whatever the reason if you do not have a P45 on the day that your new employment
commences then your new employer has a responsibility to issue you with a P46
in order for this to be submitted to HMRC.
What do I do with it?
A P46 had two sections:
- Section 1 for you to complete
- Section 2 for your new employer to complete
What do I need to complete?
In order to complete Section 1, you will need the following information:
- Your full name
- Your address
- Your date of birth
- Your national insurance number
You will also need to indicate your employment circumstances
(i.e. whether this is your first job in the current financial year
or this is your only job but you have been employed elsewhere in the current
financial year or whether this is another job in addition to your current occupation
or you are receiving state or occupational pension.
The form also asks you to indicate whether or not you have a Student Loan, although
if you are repaying this through your bank or building society you do not have to indicate this.
Note: The form should be completed in capital letters.
What happens next?
Once you have completed Section 1, you return the form to your new employer who will then complete
their details and forward to HMRC on your first pay day.
What if I find my P45?
If you find your P45 or your former employer issues one to you prior to your first pay day, then
hand this to your new employer as soon as possible.
Why do I need one?
Completing the P46 form is the method an employer uses to advise HMRC about the employment of a new employee
who does not have a P45 form to enable the new employer to set up the correct PAYE records.
The correct PAYE records are important to you to ensure that you are paying the correct amount of
income tax on your salary.