The Inland Revenue does not give their tax forms the most discrpitive of names. As a result it can be quite confusing to know the diffrenece between the various ones that you are given. This article will help to explain, in plain English, the difference between a P45, a P60 and a P46.
You will get a P45 when you stop working for a company, get laid off or quit for any reason, such as being fired. Your P45 will show various pieces of information including your PAYE reference code and how much you earned and paid in tax during the tax year.
Your P45 will be in 3 parts. When you find another job you should give parts 2 and 3 to your new employer. This will allow them to see how much tax you have paid and put you on the correct tax code. Often people loose their P45 or forget to give it to their employer. When this happens the employer is forced to put you on an emergency tax code which often means that you end up overpaying tax until you claim a tax refund at the end of the tax year.
If you do not want show your employer your P45 because you want to keep your previous wage confidential then you can get around giving them your P45 by sending parts 2 and 3 to your tax office telling them where you are working. You should make sure that you do this as soon as possible otherwise you could be put on the wrong tax code.
If you are leaving the UK you should keep your P45 safe so that you can apply for a tax refund when you are ready. Be sure not to wait too long as tax refunds do expire.
Your P60 is a statement which shows how much you have earned and how much you have paid in tax during the year.
Your P60 will show your tax code, national insurance number, tax paid, income and national insurance contributions from April 5th of the previous year until April 6th of the current year.
Your employer is required to give you a P60 and if they do not give you one after 1st June, you should enquire with your pay roll department.
Your P60 is a useful document because you can use it to see if you are due a tax refund at the end of the tax year. You can check if you are due a tax rebate by taking the ‘pay’ and ‘tax’ figures from your P60 and putting them into our online tax rebate calculator .
If you loose or are not given a P60, you can ask your employer for a statement of earnings on company headed paper. This will show the same information and can be used when applying for a tax rebate.
If you loose your P45 or were not given one by your employer, because they say, went bankrupt. You can give your new employer a P46 instead. You need to complete the P46, and once you have, give it to your new employer so that they can put you on the right tax code.