What is P45? UK Definition 2026/27
Quick Answer
The form you receive when leaving a job, showing your earnings and tax paid to date.
Definition of P45
A P45 is issued by your employer when you leave a job. It shows your tax code, total earnings, and tax paid in the current tax year. You give parts of it to your new employer or keep it for reference.
The P45 has four parts: Part 1 goes to HMRC, Part 1A is for your records, and Parts 2 and 3 go to your new employer. Without a P45, you may be put on an emergency tax code.
P45 — Key Facts for 2026/27
| Parts | 4 parts (1, 1A, 2, 3) |
| For new employer | Parts 2 and 3 |
| Keep for records | Part 1A |
| Deadline to issue | On or before last day of employment |
How P45 Works — Example
- 1Leave job on 15 June 2026
- 2P45 shows: Tax code 1257L, Earnings £15,000, Tax paid £486
- 3Start new job 1 July 2026
- 4Give Parts 2 and 3 to new employer
- 5New employer continues same tax code
- 6No overpayment or underpayment of tax
How P45 Affects Your Tax
Your P45 ensures continuity of your tax position between jobs. Without it, you may overpay tax on an emergency code. Keep Part 1A safe as proof of earnings and tax paid.
Official HMRC Guidance on P45
For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.
HMRC: P45 informationFrequently Asked Questions about P45
Related Tax Terms
Accuracy Note
This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.