Payroll operations UK-wide

Handle a new starter without a P45

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

Guide summary

Use the starter checklist to set the right tax code when a new employee does not have a P45. Ask the employee to choose statement A, B or C based on their situation. If they do not complete the checklist, use tax code 0T W1/M1, which will mean they pay more tax until HMRC issues a correct code.

  • Give the starter checklist to all new starters without a P45
  • Statement A (first job since 6 April) – use tax code 1257L cumulative
  • Statement B (other income since 6 April) – use 1257L W1/M1 non-cumulative
  • Statement C (another job or pension) – use tax code BR
  • If no checklist completed, use 0T W1/M1 (no personal allowance)
  • Ask about student loans and postgraduate loans separately
  • Ask for home address to decide Scottish or Welsh tax rates
  • Keep completed starter checklists for 3 years after the tax year ends
  • Submit the first Full Payment Submission on or before the first payday
  • Check right to work evidence for every new starter
On this page

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.