Changing jobs? Watch your tax

The tax system for employees has changed. Most employers now send HMRC pay and tax details in real-time each payday. But what happens when you change jobs?

Form P45

When you leave an employment, your employer should still give you form P45. This will normally show your pay to date and the tax deducted. It also shows your PAYE tax code.

You should give parts 2 and 3 of the form to your new employer and keep part 1A for your records.

What can go wrong?

The system sounds simple, but things can go wrong. One possible error is receiving too much tax-free pay in the month in which you change jobs. HMRC may not catch up with this until the end of the tax year, when you could find you owe some tax.

What you can do now

When you change jobs, make sure that you hand in your P45 to your new employer. If you don’t get a P45 from your previous employer, chase this up.

Check the figures on your first payslip against your P45. You should check:

Where to look next

For more information about being an employee, see the section What to expect as an employee.





This entry was posted on Friday, October 2nd, 2015 at 3:45 pm and is filed under Tax News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.