what is a p45

A P45 is a document issued to an employee by their employer when they stop working for them). It is an official certificate that contains details of the employees salary and the taxes they have paid during the tax year. The P45 has four parts, and the employer sends details for Part 1 to HM Revenue and Customs (HMRC) and gives the other parts to the employee. The employee gives Part 2 and 3 to their new employer (or to Jobcentre Plus if they are not working) and keeps Part 1A for their own records. The P45 is an essential document that an employee needs to provide to their new employer when starting a new job. It helps the new employer to work out how much tax the employee should be paying on their salary. The P45 also has other functions that are not directly related to starting a new job. For example, an employee needs it to fill in a tax return, claim benefits, and tax refunds if they are out of work.