P60 and P45 forms for employers

The two forms compared

The P60

HMRC's guidance says to give a P60 to every employee on the payroll who is working for the employer on the last day of the tax year, 5 April, by 31 May. It summarises their total pay and deductions for the year, and the employee uses it to check their tax, claim refunds or support a loan or benefit application.

A replacement P60 can be paper or electronic. Employees can also see the figures in their personal tax account or the HMRC app (GOV.UK: P60).

The P45

HMRC's leaver guidance says the employer must give an employee a P45 when they leave, and put their leaving date on their payroll record in the FPS for their last payment. Where the leaving date was missed, it goes on the next FPS with year-to-date figures and late reporting reason code H. A leaving date is not reported again on a later FPS, as that can create a duplicate record.

A paper P45 has several parts. The employee keeps Part 1A and gives Parts 2 and 3 to the new employer, or to Jobcentre Plus if they claim taxable benefits (GOV.UK: P45).

A payment made after the P45 has been issued, such as late overtime or holiday pay, is taxed on 0T on a week 1 or month 1 basis, with S or C prefixes for Scottish and Welsh taxpayers (GOV.UK), and reported on an FPS. Employees receiving a company pension stay on the payroll and no leaving date is reported.

Taking on a new employee

1. Check the right to work and that PAYE applies

   HMRC's new employee guidance starts with right to work checks and whether the person must be paid through PAYE.

2. Collect their details

   Record date of birth, gender, full address and start date (GOV.UK: employee information).

3. Take the P45 or the starter checklist

   The P45 gives name, leaving date, pay and tax to date for the current year, student loan status, National Insurance number and tax code. Without a recent P45 the employee fills in HMRC's starter checklist, which replaced the P46 (GOV.UK).

4. Work out the tax code

   Use the P45 or starter checklist to set the tax code and starter declaration (GOV.UK). The 2026-27 emergency code is 1257L (P9X).

5. Register them on the FPS

   Include them on an FPS on or before their first payday (GOV.UK).

The starter checklist

HMRC's starter checklist, last updated on 2 March 2026, collects what the employer needs to work out the code for the first pay and add the employee to the payroll. It also asks whether they have a student or postgraduate loan and which plan they are on. The 2026-27 repayment thresholds are £26,900 for Plan 1, £29,385 for Plan 2, £33,795 for Plan 4, £25,000 for Plan 5 and £21,000 for postgraduate loans (GOV.UK: rates and thresholds).

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