When you start or leave employment, or start to receive an occupational pension, it is important that HMRC knows how much income you have received during that year to date, and the tax you have paid. Employees starting a new job often have a P45 to give this information to their new employer, but not always. For instance, if they are taking on another job and continuing to work for their previous employer.
What was a P46 for?
The P46 was given to new employees to complete if they didn’t have a form P45 from their previous employment. For instance, this might be because they haven’t worked before. Employers can still take on a new member of staff without a P45. Instead of completing a P46, they now need to complete a new starter checklist for PAYE.
Complete managed payroll service
From just £4 per payslip
What is the new starter checklist for PAYE?
The checklist is used by an employer to gather the information they need to set an employee up on payroll correctly. It helps employers choose the correct tax code to operate against an employee’s income, which avoids any under- or overpayments.
The checklist is just between an employer and employee, and is not sent on to HMRC. Employers who need to pay a worker through PAYE will include them on their Full Payment Submission (FPS) the first time the employee is paid.