What is a P45?
A P45 is a document issued to employees when they leave a job. It summarises their earnings and tax paid during that employment.
Why is a P45 important?
It ensures that the employee pays the correct amount of tax when starting a new job or claiming benefits.
What information does a P45 include?
It includes total earnings, tax paid, tax code, and National Insurance details.
Who issues a P45?
Employers are responsible for issuing the P45 when employment ends.
When is a P45 used?
It is used when starting a new job or when interacting with HMRC regarding tax matters.