Starting a new job.

Starting a new job can affect how much tax you pay. But sometimes the wrong tax code gets used at first, and you could end up paying too much or too little.

If that happens, try not to worry. It’s a common issue, and it can usually be put right.

This page explains what to check and what to do next, step by step – so you can feel more confident that your pay is being taxed correctly.

Give your P45 to your new employer.

A P45 is a form you get when you leave a job.

Your old employer gives it to you. It shows:

• how much you’ve earned so far in the tax year
• how much tax you’ve already paid

 

When you start your new job, you give this to your new employer. They will use it to put you on the right tax code in your new job. This helps make sure you pay the right amount of tax from the start.

What if I don’t have a P45?

Sometimes there can be a delay in getting your P45, or you don’t get one at all. When that happens, your new employer may put you on an emergency tax code.

This isn’t a penalty, but it can mean you pay too much tax for a while.

Common situations to look out for.

There are some situations that could affect your P45 and the tax code that used when you start work.

Returning to work from benefits.

You may receive a P45 from the Job Centre, but you should check the tax code to make sure it is correct. Watch out for Month 1 and Week 1 tax codes, these are temporary codes and may mean you end up paying too much tax. If that happens, and ask them to correct it.

No P45 because of self-employment or career break.

Your employer should use a Starter Checklist to work out what tax code to use.

Benefits can affect your tax code.

Some taxable benefits you received while out of work can affect the tax code you’re given when you return to work.

You should ensure you can hand over the correct parts of your P45 to your new employer if you have one. You can check if your P45 has been processed correctly by checking your P45 against your new payslips, your previous pay and tax details should match up on both.

If you think your P45 has been processed incorrectly or your tax code is wrong, you should contact HMRC.