What is a P45 and when is it issued?
Answered 11 March 2026
What is a P45 and when is it issued?
What the law says
A Form P45 is a statutory PAYE form that must be completed when an employment ceases. Under regulation 36 of the Income Tax (PAYE) Regulations, on ceasing to employ an employee in respect of whom a code has been issued, the employer must complete Form P45.
The form consists of four parts — Part 1, Part 1A, Part 2, and Part 3 — and must contain the following information:
| Information | Included in Form |
|---|---|
| Employer's PAYE reference | All parts |
| Employee's National Insurance number (if known) | All parts |
| Employee's name | All parts |
| Date employment ceased | All parts |
| Employee's tax code | All parts |
| Whether code used on cumulative basis | All parts |
| Tax week/month of last payment (if cumulative) | All parts |
| Total payments to date | All parts |
| Employee's date of birth | Part 1 only |
| Employee's sex | Part 1 only |
The employer must, on the day employment ceases (or without unreasonable delay if not practicable):
- Send Part 1 to HMRC (for non-RTI employers, or RTI employers directed by HMRC to do so); and
- Provide Parts 1A, 2 and 3 to the employee.
Importantly, retirement on pension is not a cessation of employment for these purposes if the PAYE pension income is paid by the same employer after retirement.
The statutory definition of "Form P45" covers forms issued under regulation 36 (cessation of employment), regulation 38 (death of employee), and regulation 39 (death of pensioner).
When a new employer receives Parts 2 and 3 of the P45 from the employee on commencing employment, those parts are treated as the issue by HMRC of the tax code shown on the form. If Parts 2 and 3 are received after the employee's code has already been issued to the new employer, they must be destroyed.
HMRC guidance / practice
In practical terms, when an employee leaves employment, the employer must:
- Provide the employee with P45 Parts 1A, 2 and 3; and
- Send leaving information to HMRC on a Full Payment Submission (FPS) (under Real Time Information).
For RTI employers, leaving details are included on the FPS instead of submitting a paper P45 Part 1 to HMRC — however, employers are still required to give the departing employee a form P45.
The employee keeps Part 1A for their own records and gives Parts 2 and 3 to any new employer.
A P45 is also issued in analogous circumstances outside standard employment:
- Jobseeker's Allowance: When a JSA claim ends, the DWP sends a P45(1)U to HMRC and hands Parts 1A, 2 and 3 to the claimant.
- Incapacity Benefit: When IB ceases, the DWP issues a P45(IB), with Parts 1A, 2 and 3 sent to the claimant.
In summary: A P45 is the statutory PAYE form recording an employee's tax code, total pay, and total tax deducted up to the date their employment ends. It is issued by the employer on cessation of employment, with the employee receiving Parts 1A, 2 and 3 to pass on to their next employer (or to DWP if claiming benefits), ensuring continuity of correct tax deductions.
Citation sources
When an employee leaves an RTI employment, leaving details will be included on the FPS instead of submitting a form P45 to HMRC. However, employers will still be required to give departing employee's a form P45. To check whether an employment held on NPS has been ceased by an RTI submission, view the cessation source and end date source on the Employment Details Screen. The screen will display differently depending on how the source ceased. Where live employment has been ceased by FPS: The cessa
When a claim ends the Department for Work and Pensions (DWP) computer (JSAPS) Does a tax calculation where it has a cumulative code. The calculation takes into account the benefit paid and any previous pay and tax details Will, wherever possible under JSAPS, automatically update the record with P45(1)U details Note: DWP will use a new unique employer reference (This content has been withheld because of exemptions in the Freedom of Information Act 2000) Sends form P45 (Parts 1A, 2 and 3) direct
orm number is listed in column 3 of the Table. Table 12 Regulations which require employee to use approved document or format 1. 2. 3. Regulation Subject Form number 46(2) Form P46 where employer does not receive Form P45 and code not known Form P46 145(1) direct collection: return when relevant payments cease – 146(1) direct collection: end of year return Form P14 147(2) direct collection: return of unpaid tax – 154(3) claimant’s certificate of full-time education Form P187 184G(3) claimant’s c
When Incapacity Benefit ceases, form P45(IB) is issued by the Department for Work and Pensions. Parts 1a, 2 and 3 are sent to the claimant and are identical to the normal form P45.
loyer is required to send Form P46 to HMRC under regulations 47 to 49, or b the employer is required to send the first return in relation to the employee under regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B) to HMRC , regulation 42 (procedure if employer receives Form P45) applies. 3 If the employee gives Parts 2 and 3 of Form P45 to the employer— a after, as the case may be— i Form P46 is required to have been sent to HMRC , or ii
period. 5 “Short payment period” has the meaning given in regulation 25(8). Higher rate, additional rate and nil tax codes Higher rate code: deductions 32 If an employee’s code is the higher rate code the employer must deduct tax at the higher rate, and regulations 22 and 26 (cumulative and non-cumulative basis) do not apply. Additional rate code: deductions 32A If the employee’s code is the additional rate code the employer must deduct tax at the additional rate and regulations 22 and 26 (cumul
When an employee leaves employment the employer must Provide the employee with a P45 parts 1A, 2 and 3. Send leaving information to HMRC on their employees Full Payment Submission (FPS) If an employee dies, the employer enters the date of death in the date of leaving field on the FPS If the employee was claiming Jobseeker’s Allowance The Department for Work and Pensions Office Sends in P45 part 1 to HMRC Hands the P45 part 1A, 2 and 3 to the employee. The employee keeps Part 1A and gives Parts 2
not available— a the employer is not required to complete that Part of the Form, and b where the employer does not complete that Part, any requirement, however expressed, in these Regulations which relates only to Part 3 does not apply. 2 The employer must then— a send Part 1 of that form to the Inland Revenue if the employer is one to whom paragraph (2A) applies , and b provide Parts 1A, 2 and 3 to the employee, on the day on which the employment ceases or, if that is not practicable, without u