Payroll operations

Handle a new starter without a P45

What to do when a new employee does not provide a P45 from their previous employer.

UK-wide
Guide summary

When a new employee has no P45, get them to complete a starter checklist. Use their answers to set the correct tax code. Keep the form for 3 years and report details to HMRC.

  • Get employee to complete starter checklist if no P45
  • Use Statement A (1257L), B (1257L W1/M1) or C (BR) for tax code
  • Ask about student loans and UK home address
  • Use tax code 0T W1/M1 if no checklist completed
  • Record NI number and right to work documents
  • Submit Full Payment Submission (FPS) on or before first payday
  • Keep starter checklist for 3 years after tax year ends
  • Employee must contact HMRC to correct wrong tax codes
  • Scottish/Welsh tax rates depend on home address
  • Postgraduate loans are separate from student loans
On this page
UK-wide

Related guides in Tax & Finance

Pay PAYE to HMRC

How and when to pay your PAYE tax and National Insurance to HMRC.

When a new employee does not have a P45 from their previous employer, you must use the starter checklist to determine their correct tax code. This guide explains what to do.

Why employees might not have a P45

  • First job: Never worked before in the UK
  • Gap in employment: Not worked since 6 April
  • Lost P45: Previous employer did not provide or employee lost it
  • Self-employed: Previously worked for themselves
  • From overseas: First UK employment

If employee does not complete starter checklist

If the employee refuses or fails to complete the starter checklist:

  • Use tax code 0T W1/M1: No Personal Allowance, non-cumulative
  • Employee will overpay tax: All earnings taxed from £0
  • HMRC may issue correct code: After processing first FPS
  • Employee can contact HMRC: To get correct code issued faster

Collecting employee information

Regardless of P45 status, you need:

  • Full name: As shown on official documents
  • Date of birth: For NI category determination
  • National Insurance number: Essential for HMRC records
  • Home address: To determine Scottish/Welsh tax status
  • Student loan status: Plan type if applicable
  • Right to work evidence: Legal requirement to check

Reporting the new starter

Include the new employee on your FPS with:

  • Starter declaration: A, B, or C from checklist
  • Start date: First day of employment
  • Tax code: Based on starter declaration
  • NI number: Or indicate you are awaiting it

Tip: Submit FPS on or before their first payday - HMRC will then send the correct tax code if different from your determination.